Using discrete choice experiments for environmental valuation

This paper provides with a review of the state of the art of environmental valuation with discrete choice experiments (DCE). The growing body of literature on this field serves to emphasise the increasing role that DCE are playing in environmental decision making in the last decade. The paper attempts to cover the full process of undertaking a choice experiment, including survey and experimental design, econometric analysis of choice data and welfare analysis. The research on this field is found to be intense, although many challenges are put forward (e.g. choice task complexity and cognitive effort, experimental design, endogeneity or model uncertainty). Reviewing the state of the art of DCE serves to draw attention to the main challenges that this methodological approach will need to overcome in the coming years and to identify the frontiers in discrete choice analysis.The author acknowledges the financial support from the Department of Environment of the Basque Government through IHOBE, S.A. and from the Department of Education of the Basque Government through grant IT-334-07 (UPV/EHU Econometrics Research Group)

Using discrete choice experiments for environmental valuation

This paper provides with a review of the state of the art of environmental valuation with discrete choice experiments (DCE). The growing body of literature on this field serves to emphasise the increasing role that DCE are playing in environmental decision making in the last decade. The paper attempts to cover the full process of undertaking a choice experiment, including survey and experimental design, econometric analysis of choice data and welfare analysis. The research on this field is found to be intense, although many challenges are put forward (e.g. choice task complexity and cognitive effort, experimental design, endogeneity or model uncertainty). Reviewing the state of the art of DCE serves to draw attention to the main challenges that this methodological approach will need to overcome in the coming years and to identify the frontiers in discrete choice analysis.choice modelling, survey, discrete choice experiments, environmental valuation

Comparing the performance of different approaches to deal with attribute non-attendance in discrete choice experiments: a simulation experiment

There is a growing body of literature acknowledging that respondents to DCE often use simplifying strategies, like ignoring one or several attributes to provide with their choices. Two main approaches have appeared to analyse the impact of attribute non-attendance on welfare estimates: the stated non-attendance (SNA) approach and the analytical non-attendance (ANA) approach. Using simulation experiments, this paper investigates the results and reliability of the approaches developed in the recent years in order to deal with attribute non-attendance. The simulation results indicate that the treatments so far proposed are not in all cases suitable. In the absence of correlated errors, the SNA approach seems to provide with unbiased welfare estimates but the ANA approach fails to do so. On the other hand, in the presence of correlated errors, none of the approaches seems to provide with unbiased WTP estimates in all cases.simulation, discrete choice experiments, willingness to pay, attribute non attendance

Selecting random parameters in discrete choice experiment for environmental valuation: A simulation experiment

This paper examines the various tests commonly used to select random parameters in choice modelling. The most common procedures for selecting random parameters are: the Lagrange Multiplier test as proposed by McFadden and Train (2000), the t-statistic of the deviation of the random parameter and the log-likelihood ratio test. The identification of random parameters in other words the recognition of preference heterogeneity among population is based on the fact that an individual makes a choice depending on her/his: tastes, perceptions and experiences. A simulation experiment was carried out based on a real choice experiment and the results indicated that the power of these three tests depends importantly on the spread and type of the tested parameter distribution.choice experiment, simulation, preference heterogeneity, random parameter logit, tests for selecting random parameters

Is high-speed rail a sustainable mobility option? A life-cycle assessment of the Basque Y project in Spain

The Basque Y High Speed Rail connection between Madrid and the Basque Autonomous Community is, quite exceptionally, a mixed freight and passengers HSR line, that has been presented as a fundamental step towards a more sustainable mobility. In this paper, a life-cycle assessment (LCA) is conducted to assess the environmental performance of the line throughout its lifetime, based on the latest data available, including both construction and maintenance burdens. Results show that this new corridor is not justified in terms of reducing emissions and energy consumption, mainly due to its low transport density. It also has a negligible impact on Spanish current low rail freight traffic. We conclude, therefore, that Spain needs to reconsider its AVE network expansion if aiming at increasing rail's modal share and meeting the emissions targets set by the EU. From a policy perspective, many information inconsistencies have been found regarding the demand projections of freight transport, which cast serious doubt about the decision-making process behind Trans-European transport projects.Andoni Kortazar and Gorka Bueno acknowledge the funding provided by the Department of Education of the Basque Government through grant IT 1567-22 Ekopol Research Group (UPV/EHU). David Hoyos acknowledges financial support of Ministerio de Ciencia e Innovación MCIN/AEI/10.13039/501100011033 through grant PID2020-113650RB-I00, the Basque Government through grant IT1508-22 (UPV/EHU Econometrics Research Group) and FEDER “Una manera de hacer Europa” / Unión Europea “NextGenerationEU”/PRTR

The management of Natura 2000 Network sites: a discrete choice experiment approach

One of the main problems that public institutions face in the management of protected areas, such as the European Natura 2000 network, is how to design and implement sustainable management plans accounting both for the social cost and benefits of conserving these sites. This paper provides with an empirical application of a discrete choice experiment undertaken in a Natura 2000 site in the Basque Country (Spain) aimed at evaluating the social preferences for different land-use options. This information is then used to evaluate the social desirability of some future management plans.environmental valuation, discrete choice experiments, choice modelling, Natura 2000

The influence of cultural identity on the WTP to protect natural resources: some empirical evidence

This paper shows that cultural identity may have considerable influence on the WTP to protect natural resources. The Basque Country, the region with the highest ethnic homogeneity in Europe, serves as an example to illustrate how important this issue can be in the environmental valuation of natural resources. The rationale for this influence may be found in the deep roots of the Basque culture, a culture where amalurra (mother Earth), i.e. the natural environment, has a central role, as studies from diverse disciplines such as anthropology, psychology and political science have shown. Simulated full distribution of the WTP to protect a Basque natural area using a random parameter logit model reveals that mean marginal WTP to protect its environmental attributes is approximately 60% higher if the cultural identity of the respondent is Basque. To our knowledge, this is the first application to show the influence of cultural identity on the WTP to protect natural resources. Our findings have some methodological and policy implications. On the one hand, failure to take into account cultural identitary issues could result in significantly biased results in benefit transfer applications. On the other hand, policies aimed at conservation natural resources should consider the cultural context in which they will be implemented.The authors acknowledge the financial support from the Department of Environment of the Basque Government and from the Department of Education of the Basque Government through grant IT-334-07 (UPV/EHU Econometrics Research Group)

Suitability of discrete choice experiments for landscape management under the European Landscape Convention

[EN] Landscapes throughout the world are increasingly being altered as a result of human actions and natural processes, therefore necessitating urgent management. Acknowledging this situation, the European Landscape Convention (ELC) was approved in 2000 with the explicit objective of protecting, managing and planning European landscapes. In this paper, we provide empirical evidence on the suitability of the Discrete Choice Experiment (DCE) method-ology for valuing multidimensional landscapes under the ELC. An application in the Basque Country, Spain, serves as an example to illustrate that the DCE methodology may be suitable for supporting the aims of the ELC because: (i) it is a tool for public consultation; (ii) it offers an insight into the relative attractiveness of key landscape attributes, such as native forests and farming activities; and (iii) it provides policy-makers with quantitative information on the public preferences for potential future landscape protection, management and planning programmes. The results highlight the important role that the conservation of native forests and the promotion of organic farming may play in the management of European landscapes, which in turn is found to be strongly culturally dependent

Landscape valuation through discrete choice experiments: Current practice and future research reflections

This work has been presented in: V Conference AERNA, Faro (Portugal), 30 May 2012-1 June 2012 and IV Workshop on Valuation Methods in Agro-food and Environmental Economics, Castelldefels (Barcelona, Spain), 12 July 2012-13 July 2012.The Discrete Choice Experiments (DCEs) are a fast growing landscape valuation technique. This paper describes some recent applications implemented in this field and identifies their attributes, levels, payment vehicles, experimental designs, innovations and econometric models. From this basis some important areas for future research are reflected upon. These include: choice task complexity, experimental design, preference and scale heterogeneity or econometric models’ behaviour. The purpose of this paper is to survey the state of current DCE applications, identify knowledge gaps and suggest some reflections for future research in landscape valuation through DCEs.Financial support from the Basque Government through “Programas de ayudas para formación y perfeccionamiento del personal investigador”

Selecting random parameters in discrete choice experiment for environmental valuation: A simulation experiment

This paper examines the various tests commonly used to select random parameters in choice modelling. The most common procedures for selecting random parameters are: the Lagrange Multiplier test as proposed by McFadden and Train (2000), the t-statistic of the deviation of the random parameter and the log-likelihood ratio test. The identification of random parameters in other words the recognition of preference heterogeneity among population is based on the fact that an individual makes a choice depending on her/his: tastes, perceptions and experiences. A simulation experiment was carried out based on a real choice experiment and the results indicated that the power of these three tests depends importantly on the spread and type of the tested parameter distribution.The authors are grateful to the Department of Education of the Basque Government through grant IT-334-07 (UPV/EHU Econometrics Research Group) and from Spanish Ministerio de Educación and FEDER (SEJ2007-61362)