Modelling the Non-Market Environmental Costs and Benefits of Biodiversity Projects Using Contingent Valuation Data

MacMillan, D.C. and Duff, E.I. and Elston, D.A. (2001) Modelling the Non-Market Environmental Costs and Benefits of Biodiversity Projects Using Contingent Valuation Data. Environmental & Resource Economics, 18 (4). pp. 391-410. ISSN 0924-6460. (Access to this publication is restricted)

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http://dx.doi.org/10.1023/A:1011169413639

Abstract

CV studies rarely ask willingness to accept (WTA) questions, yet there are a range of environmental projects where there are likely to be potential losers as well as gainers. This paper presents evidence from six biodiversity projects that the inclusion of contingent compensation payments from those respondents who preferred the status quo can substantially reduce net project benefits, even when the proportion of losers is relatively small. A statistical model for estimating the mean welfare measure from dichotomous choice data which allows for both positive WTP, zero WTP, and WTA is described. As many environmental projects are likely to create both gainers and losers, we recommend that CV analysts give serious consideration to the collection and analysis of WTA data otherwise they risk generating biased estimates of project benefits.

Item Type: Article
Uncontrolled keywords: biodiversity, CV, non-market costs, willingness to accept, willingness to pay
Subjects: G Geography. Anthropology. Recreation > GE Environmental Sciences
G Geography. Anthropology. Recreation > GN Anthropology
Divisions: Faculties > Social Sciences > School of Anthropology and Conservation > DICE (Durrell Institute of Conservation and Ecology)
Depositing User: Douglas MacMillan
Date Deposited: 03 Sep 2008 14:57
Last Modified: 04 Mar 2013 14:24
Resource URI: http://kar.kent.ac.uk/id/eprint/8553 (The current URI for this page, for reference purposes)
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