A combinatorial optimisation approach to non-market environmental benefit aggregation

Nick Hanley, Stephen Hynes and Cathal O'Donoghue

No 2008-08, Stirling Economics Discussion Papers from University of Stirling, Division of Economics

Abstract: This paper considers the use of spatial microsimulation in the aggregation of regional environmental benefit values. The developed spatial microsimulation model uses simulated annealing to match the Irish Census of Agriculture data to a Contingent Valuation Survey that contains information on Irish farmers' willingness to pay (WTP) to have the corncrake restored as a common sight in the Irish countryside. We then use this matched farm survey and Census information to produce regional and national total WTP figures, and compare these to figures derived using more standard approaches to calculating aggregate environment benefit values. The main advantage of the spatial microsimulation approach for environmental benefit value aggregation is that it allows one to account for the heterogeneity in the target population. Results indicate that the microsimulation modelling approach provides aggregate WTP estimates of a similar magnitude as those produced using the usual sample mean WTP aggregation at the national level, but yields regional aggregate values which are significantly different.

Keywords: Environmental benefit value; aggregation spatial microsimulation; willingness to pay; corncrake conservation (search for similar items in EconPapers)
Date: 2008-06
New Economics Papers: this item is included in nep-agr, nep-cmp, nep-dcm, nep-env and nep-geo
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/1893/506

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:stl:stledp:2008-08

Access Statistics for this paper

More papers in Stirling Economics Discussion Papers from University of Stirling, Division of Economics Division of Economics, University of Stirling, Stirling, Scotland FK9 4LA. Contact information at EDIRC.
Bibliographic data for series maintained by Liam Delaney ( this e-mail address is bad, please contact ).