Economic Valuation of Environmental Values of the Landscape Development and Protection Area of Volcji Potok

Miroslav Verbič and Renata Erker

MPRA Paper from University Library of Munich, Germany

Abstract: When the market for a certain good is competitive enough, economic activities can be studied by the market pricing mechanism. Because this is usually not feasible in case of environmental goods with embodied natural and cultural heritage, particular methods for economic valuation of such goods have to be applied. The present article represents the economic valuation of the Landscape Development and Protection Area of Vol誩 Potok, which is an important Slovenian cultural landscape area with internationally recognized characteristics. For this purpose we have chosen the method of contingent valuation and performed an econometric analysis of stated and true willingness-to-pay. We obtained the value of willingness-to-pay and determined its determinants. We also made an attempt to control for different biases that arise in such analyses. At last, we used the adjusted average individual value of willingness-to-pay to calculate the aggregate willingness-to-pay.

Keywords: bivariate probit model; contingent valuation method; discrete choice method; embedding effects; environmental values; starting point bias; willingness-to-pay (search for similar items in EconPapers)
JEL-codes: C51 Q51 Q56 (search for similar items in EconPapers)
Date: 2007-01
New Economics Papers: this item is included in nep-agr, nep-cul, nep-dcm, nep-env and nep-tur
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:1819

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