Using Choice Experiments to Explore the Spatial Distribution of Willingness to Pay for Rural Landscape Improvements

Danny Campbell (), W. George Hutchinson () and Riccardo Scarpa
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W. George Hutchinson: Queen’s University Belfast

Working Papers in Economics from University of Waikato

Abstract: We report findings from a choice experiment survey designed to estimate the economic benefits from policy measures which improve the rural landscape under an agri-environment scheme in the Republic of Ireland. Using a panel mixed logit specification to account for unobserved taste heterogeneity we derive individual- specific willingness to pay estimates for each respondent in the sample. We subsequently investigate the existence of spatial dependence of these estimates. Results suggest the existence of positive spatial autocorrelation for all rural landscape attributes. As a means of benefit transfer, kriging methods are employed to interpolate willingness to pay estimates across the whole of the Republic of Ireland. The kriged WTP surfaces confirm the existence of spatial dependence and illustrate the implied spatial variation and regional disparities in WTP for all the rural landscape improvements.

Keywords: landscape valuation; spatial distribution; choice experiments; non-market valuation (search for similar items in EconPapers)
JEL-codes: C25 Q0 Q2 Q24 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2007-03-23
New Economics Papers: this item is included in nep-bec, nep-cse and nep-fin
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Citations: View citations in EconPapers (7)

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https://repec.its.waikato.ac.nz/wai/econwp/0706.pdf (application/pdf)

Related works:
Journal Article: Using Choice Experiments to Explore the Spatial Distribution of Willingness to Pay for Rural Landscape Improvements (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:wai:econwp:07/06

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