Verbic, Miroslav and Erker, Renata (2007): Economic Valuation of Environmental Values of the Landscape Development and Protection Area of Volcji Potok.
Download (638kB) | Preview
When the market for a certain good is competitive enough, economic activities can be studied by the market pricing mechanism. Because this is usually not feasible in case of environmental goods with embodied natural and cultural heritage, particular methods for economic valuation of such goods have to be applied. The present article represents the economic valuation of the Landscape Development and Protection Area of Vol誩 Potok, which is an important Slovenian cultural landscape area with internationally recognized characteristics. For this purpose we have chosen the method of contingent valuation and performed an econometric analysis of stated and true willingness-to-pay. We obtained the value of willingness-to-pay and determined its determinants. We also made an attempt to control for different biases that arise in such analyses. At last, we used the adjusted average individual value of willingness-to-pay to calculate the aggregate willingness-to-pay.
|Item Type:||MPRA Paper|
|Institution:||Institute for Economic Research Ljubljana|
|Original Title:||Economic Valuation of Environmental Values of the Landscape Development and Protection Area of Volcji Potok|
|Keywords:||bivariate probit model; contingent valuation method; discrete choice method; embedding effects; environmental values; starting point bias; willingness-to-pay|
|Subjects:||Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q51 - Valuation of Environmental Effects
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q56 - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C51 - Model Construction and Estimation
|Depositing User:||Miroslav Verbic|
|Date Deposited:||17. Feb 2007|
|Last Modified:||13. Feb 2013 14:13|
Arrow, K. J., Solow, R., Portney, P. R., Leamer, E. E., Radner, R. and Schuman, H. (1993) Report on the National Oceanic and Atmospheric Administration (NOAA) Panel on Contingent Valuation, Federal Register, 58, 10, 4601-4614. Bateman, I., Carson, R., Day, B., Hanemann, M., Hanley, N., Hett, T., Jones-Lee, M., Loomes, G., Mourato, S., ֺdemiroglu, E., Pearce, D. W., Sugden, R. and Swanson, J. (2002) Economic Valuation With Stated Preference Techniques: A Manual, Edward Elgar, Cheltenham. Bateman, I. J., Cole, M. A., Georgiou, S. and Hadley, D. J. (2006) Comparing Contingent Valuation and Contingent Ranking: A Case Study Considering the Benefits of Urban River Water Quality Improvements, Journal of Environmental Management, 79, 3, 221-231. Cameron, T. A. and James, M. D. (1987) Efficient Estimation Methods for Closed-Ended Contingent Valuation Survey Data, Review of Economics and Statistics, 69, 269-276. Cicia, G. and Scarpa, R. (2000) Willingness to Pay for Rural Landscape Preservation: A Case Study in Mediterranean Agriculture, Nota di lavoro, 59, Fondazione Eni Enrico Mattei, Milano. Ciriacy-Wantrup, S. V. (1947) Capital Returns from Soil-Conservation Practices, Journal of Farm Economics, 29, 1188-1190. Davis, R. (1963) The Value of Outdoor Recreation: An Economic Study of the Maine Woods, Doctoral Dissertation in Economics, Harvard University, Harvard, MA. Garrod, G. D. and Willis, K. G. (1999) Economic Valuation of the Environment: Methods and Case Studies, Edward Elgar, Cheltenham. Haab, T. C. and McConnell, K. E. (2002) Valuing Environmental and Natural Resources: The Econometrics of Non-market Valuation, Edward Elgar Publishing, Cheltenham. Hadker, N., Sharma, S., David, A. and Muraleedharan, T. R. (1997) Willingness-to-pay for Borivli National Park: Evidence from a Contingent Valuation, Ecological Economics, 21, 2, 105-122. Hanemann, W. M., Loomis, J. and Kanninen, B. J. (1991) Statistical Efficiency of Double Bounded Dichotomous Choice Contingent Valuation, American Journal of Agricultural Economics, 73, 1255-1263. Laitila, T. and Paulrud, A. (2006) A Multi-Attribute Extension of Discrete-Choice Contingent Valuation for Valuation of Angling Site Characteristics, Journal of Leisure Research, 38, 2, 133-142. Lette, H. and de Boo, H. (2002) Economic Valuation of Forests and Nature: A Support Tool for Effective Decision-making, Theme Study, 6, EC-LNV, Ede. Mitchell, R. C. and Carson, R. T. (1989) Using Surveys to Value Public Goods: The Contingent Valuation Method, Resources for the Future, Washington, DC. Moons, E. (2003) The Development and Application of Economic Valuation Techniques and Their Use in Environmental Policy: A Survey, Working Paper, 7, Faculty of Economics and Applied Economic Sciences, Leuven. Navrud, S. and Ready, R. C. (2002) Valuing Cultural Heritage: Applying Environmental Evaluation Techniques to Historic Buildings, Monuments and Artefacts, Edward Elgar, Cheltenham. Nunes, P. A. L. D. and Schokkaert, E. (2001) Warm Glow and Embedding in Contingent Valuation, Nota di lavoro, 73, Fondazione Eni Enrico Mattei, Milano. Nunes, P.A. L. D., van den Bergh, J. and Nijkamp, P. (2003) The Ecological Economics of Biodiversity: Methods and Policy Applications, Edward Elgar, Northampton. Schlaepfer, F. (2006) Survey Protocol and Income Effects in the Contingent Valuation of Public Goods: A Meta-analysis, Ecological Economics, 57, 3, 415-429. Van der Laan, P. and van Tuinen, H. K. (1996) Increasing the Relevance of Income Statistics: Experiences and Plans in the Netherlands, Paper presented at the Expert Group on Household Income Statistics, Luxembourg Income Study, Canberra. Venkatachalam, L. (2004) The Contingent Valuation Method: A review, Environmental Impact Assessment Review, 24, 1, 89-124. Verbic M. (2004) Economic Aspects of Spatial Values in the Process of Coordination of Developmental Interests and Protection Requirements: Construction, Analysis and Evaluation of Methods for Economic Valuation of Spatial Values, Institute for Economic Research, Ljubljana. Verbic M. and Slabe Erker, R. (2004) Guidelines for Economic Valuation of Natural and Cultural Heritage, Institute for Economic Research, Ljubljana. Verbic M. and Slabe Erker, R. (2005) Economic Aspects of Spatial Values in the Process of Coordination of Developmental Interests and Protection Requirements: Application of Methods for Economic Valuation of Spatial Values to the Landscape Development and Protection Area of Volcji Potok, Institute for Economic Research, Ljubljana. Verbic M. (2006) Analysis of Stated Preferences as an Approach to Economic Valuation of Environmental Values and Natural and Cultural Heritage, IB Review, 40, 1-2, 21-36.