EconPapers    
Economics at your fingertips  
 

Estimation of Distance-Decay Functions to Account for Substitution and Spatial Heterogeneity in Stated Preference Research

Marije Schaafsma, Roy Brouwer (), Alison Gilbert, Jeroen van den Bergh and Alfred Wagtendonk

Land Economics, 2013, vol. 89, issue 3

Abstract: In a site-selection choice experiment various hypotheses are tested related to spatial heterogeneity in willingness to pay (WTP) for environmental improvements. Spatial heterogeneity is measured through distance-decay effects, substitute sites inside and outside the experiment’s choice set, and spatial trend variables. We demonstrate that distance-decay functions differ between users and nonusers and across study sites. Also the distance to substitutes outside the choice set explains spatial variation in WTP. We show that further extending the model with spatial trend variables reveals additional spatial heterogeneity in choices. Accounting for spatial heterogeneity patterns results in significantly different WTP estimates for environmental improvements.

JEL-codes: Q25 Q51 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (19) Track citations by RSS feed

Downloads: (external link)
http://le.uwpress.org/cgi/reprint/89/3/514
A subscripton is required to access pdf files. Pay per article is available.

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:uwp:landec:v:89:y:2013:iii:1:p:514-537

Access Statistics for this article

More articles in Land Economics from University of Wisconsin Press
Bibliographic data for series maintained by ().

 
Page updated 2019-04-29
Handle: RePEc:uwp:landec:v:89:y:2013:iii:1:p:514-537