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Estimation of distance-decay functions to account for substitution and spatial heterogeneity in stated preference research

Estimation of distance-decay functions to account for substitution and spatial heterogeneity in stated preference research
Estimation of distance-decay functions to account for substitution and spatial heterogeneity in stated preference research
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
0023-7639
514-537
Schaafsma, Marije
937ac629-0fa2-4a11-bdf7-c3688405467d
Brouwer, Roy
e05861b5-5961-45cd-9de0-883067908c5e
Gilbert, Alison
66410d6b-8ed1-4561-a42f-e78f09f291e7
Van den Bergh, Jeroen C.J.M.
4a45c7be-e71d-4c9d-8187-702f2d589c96
Wagtendonk, Alfred
1b743ced-32fa-4a81-900a-0b9a4d7c372b
Schaafsma, Marije
937ac629-0fa2-4a11-bdf7-c3688405467d
Brouwer, Roy
e05861b5-5961-45cd-9de0-883067908c5e
Gilbert, Alison
66410d6b-8ed1-4561-a42f-e78f09f291e7
Van den Bergh, Jeroen C.J.M.
4a45c7be-e71d-4c9d-8187-702f2d589c96
Wagtendonk, Alfred
1b743ced-32fa-4a81-900a-0b9a4d7c372b

Schaafsma, Marije, Brouwer, Roy, Gilbert, Alison, Van den Bergh, Jeroen C.J.M. and Wagtendonk, Alfred (2013) Estimation of distance-decay functions to account for substitution and spatial heterogeneity in stated preference research. Land Economics, 89 (3), 514-537.

Record type: Article

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

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More information

Published date: August 2013
Organisations: Faculty of Natural and Environmental Sciences, Geography & Environment

Identifiers

Local EPrints ID: 368369
URI: https://eprints.soton.ac.uk/id/eprint/368369
ISSN: 0023-7639
PURE UUID: fe0512c3-0b27-44d4-b2de-6466cde681b5
ORCID for Marije Schaafsma: ORCID iD orcid.org/0000-0003-0878-069X

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Date deposited: 18 Sep 2014 08:01
Last modified: 14 Jun 2019 00:30

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