Using Choice Experiments to Value the Environment
Nick Hanley (),
Robert Wright () and
Wiktor Adamowicz ()
Environmental & Resource Economics, 1998, vol. 11, issue 3, pages 413-428
This paper we outline the “choice experiment” approach to environmental valuation. This approach has its roots in Lancaster's characteristics theory of value, in random utility theory and in experimental design. We show how marginal values for the attributes of environmental assets, such as forests and rivers, can be estimated from pair-wise choices, as well as the value of the environmental asset as a whole. These choice pairs are designed so as to allow efficient statistical estimation of the underlying utility function, and to minimise required sample size. Choice experiments have important advantages over other environmental valuation methods, such as contingent valuation and travel cost-type models, although many design issues remain unresolved. Applications to environmental issues have so far been relatively limited. We illustrate the use of choice experiments with reference to a recent UK study on public preferences for alternative forest landscapes. This study allows us to perform a convergent validity test on the choice experiment estimates of willingness to pay. Copyright Kluwer Academic Publishers 1998
Keywords: choice experiments; cost-benefit analysis; environmental valuation; forest landscapes; stated preference models (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (157) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:kap:enreec:v:11:y:1998:i:3:p:413-428
Access Statistics for this article
Environmental & Resource Economics is currently edited by I.J. Bateman and R.K. Turner
More articles in Environmental & Resource Economics from European Association of Environmental and Resource Economists
Series data maintained by Sonal Shukla ().