Modeling Spatial Patchiness and Hot Spots in Stated Preference Willingness to Pay

Robert Johnston and Mahesh Ramachandran ()

Environmental & Resource Economics, 2014, vol. 59, issue 3, 363-387

Abstract: Stated preference analyses often impose strong assumptions regarding spatial welfare distributions that can influence the validity of welfare analysis and aggregation. These include spatial homogeneity and continuous distance decay. Global assumptions such as these are increasingly questioned by non-economics disciplines in favor of approaches that allow for local patchiness. Drawing from this literature, this article proposes methods to identify and evaluate hot spots in stated preference welfare estimates using local indicators of spatial association. Methods are illustrated using geocoded choice experiment data addressing river restoration. Results suggest the presence of statistically significant, non-continuous patterns overlooked by current approaches. Copyright Springer Science+Business Media Dordrecht 2014

Keywords: Choice modeling; Ecosystem service; Valuation; Cost benefit analysis; Local indicators of spatial association; Distance decay; Spatial autocorrelation; Q51; D61 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (46)

Downloads: (external link)
http://hdl.handle.net/10.1007/s10640-013-9731-2 (text/html)
Access to full text is restricted to subscribers.

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:kap:enreec:v:59:y:2014:i:3:p:363-387

Ordering information: This journal article can be ordered from
http://www.springer. ... al/journal/10640/PS2

DOI: 10.1007/s10640-013-9731-2

Access Statistics for this article

Environmental & Resource Economics is currently edited by Ian J. Bateman

More articles in Environmental & Resource Economics from Springer, European Association of Environmental and Resource Economists Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().