Assessment of Regeneration Projects in Urban Areas of Environmental Interest: A Stated Choice Approach to Estimate Use and Quasi-Option Values

Elisabetta Strazzera, Elisabetta Cherchi and Silvia Ferrini ()
Additional contact information
Elisabetta Cherchi: Department of Land Engineering, University of Cagliari, Piazza D'Armi 16, I-09123 Cagliari, Italy

Environment and Planning A, 2010, vol. 42, issue 2, 452-468

Abstract: We adopt an attribute-based stated choice approach to evaluate public preferences over planning alternatives for an urban site of environmental interest. Since such projects involve some uncertainty and irreversibility, special attention is devoted to the estimation of quasi-option values associated with project development. Two distinct measures for the quasi-option value are estimated, and both coefficients indicate that the public place significant value on the reduction of the possibility of adverse irreversible effects: a more prudent development strategy is valued at about four times greater than a procedure that provides a greater chance of an undesired outcome. Furthermore, the study involves elicitation of intertemporal preferences over projects with different time spans, and estimation of the implicit discount rates: the values obtained seem high if compared with standard discount rates applied to public projects, but not far from interest rates on consumption found in the market.

Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1068/a4213 (text/html)

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:sae:envira:v:42:y:2010:i:2:p:452-468

DOI: 10.1068/a4213

Access Statistics for this article

More articles in Environment and Planning A
Bibliographic data for series maintained by SAGE Publications ().