Stated-Preference Methods for Valuing Environmental Amenities

22 Pages·2008·0.67 MB·English

13
Stated-PrefMeertehnocdfeso rV aluing
EnvironmeAnmteanli ties
WIKTORL .A DAMOWICZ
PETERC .B OXALL
JORDAN J.L OUVIERE
JOFFRES WAIT
MICHAELW ILLIAMS
13.1I NTRODUCTION
Conteinnvtga lua(tCiV)oh na bs eeenm ploybeyed c oniosmftosar p prox­
imattehliyyr etaytr ovs a lcuhea ngensa tiulrnr e asources and environments.
Estimatthivena gl oufre e souirmcper oevnetomsrd amagiesas n alogtoou s
thper boleimnm arkertseienagr ocfeh ts imattihndege manfdon re wp ro­
ducotrs servicetsw.bo aTshaiepcrp oera cahrteeots h pirso blwehmi hcahv e
evolvdeudr ingp atsthtwe od ecadaelstu,hg oht hearreme i novra riations
witheianc( hs efeoe,rx ampUlreb,aa nn dH aus1e9r9,3T )h.efi rsatp proach
involtvhdeees v epmleonotfad etaciloenpdct de escriopftt hipeor no dfuocrt
whicthhd ee mafnodr eictsao bs etm adeT.h idse scrinpeteido bnne po utr ely
verbbaulmt a yr equtihrdeee vleopmeonfrt e ndnegrsmi,o delmsoc,k -ups,
prototmyupletsi,m perdenistaea tieotncIs.n, acnayst eh,e esesleenmt.ei natl
ist hatth meo satc curdaetspcetri ipoons sibolfoe n (eo artm ostv earf ye w)
potenptrioadlui custs sea dst hbea sfiosdr e termtihnpeio ntge ndteimaaln d
ors harIent. h see coanpdp rotahcpehr ,o cdtuo fi nteirsve isetw aesod n oef
manpyo ssipbrloedu cts whiintc hhve a dliuoffereps ro i stitohnesoy c cupy
onk eyp roducchta racterfiesatritecusIs.n t ohria sp proaccahru,ely fl
desiganrerdao yfps r odcuhcatr earcitsatriuecs set dod evelnoupm baoe fr
produccotn cedpetsi cprtitoonw sh iccho nsumreerascT th.ia sp proach
differs ionf w hteetrmthshe perr odudcets cripatrsieho onws' no naeta
timew'hi,c rhe pressoemnveta sr ioafnt atrd iticoonnajloa innatl y(sGirese n
al1.9,7 G2r;e eann dS rinaavna1,s9"7 819,9 L0o;u vi1e9r8e8 1b9,9 4o)r,
et
presenatsse edto sfc ompetoipntgi ownhsi,cr he presseonmtevs a rioafn t
expertiamle-nchaoniacley( sLiosu viaenrdWe o odwor1t9h8 3L;o uviere
1988ba,1, 9 9B4a;t saenldLl o uiver1e9,9 C1a;r soanl 1.9,9 4).
et
The first asphparrmeoasan cysh i miiltaiwreist thr aditaipopcn-liail
ationCsV ,io nfw hicasha ccuraatspe o sisblaed escriopft iraoe unsr oce
METHODS FORV ALUINGE NVIRONMENTALA MENITISE 461
improvemeonrtd amagiesf ormulaatnedds ,a mploefsi ndividauraeal ssk ed
tor espontdot haitm provemuensti nogp eno-rc losed-evnadleuda tion
questiTohnesp .r oblewmi tthh iasp proaicsth h aittr eliveesr hye aviolny
thea ccuraocfay particduelsacrr ipatnidoa nn,ye rroirnst hed escription
discovearfteedrt hef accta nnobte c hangeTdh.u si,n t hecase ofp roduct
concepiftc so,n sumearrste o ltdh es ellpirnigic se$ 5.b4u8tt, h ea ctusaell ling
pricuep ona nda fteirn troducits$i 7on. 2t4he,ri esn ow ayt o' adjutshte'
forectaost ta kteh iisn taoc counSti.m ilairntl hyec, a soef a r esource damage
scenarifi loa,t erre searicnhd icattheasit n steoafd2 50de ad ductkhse ,
numbewra sc losteor3 75t,h eries n o wayt ot aket haitn taoc count.
Similatrhliyas,p proaccahn noatc tuavllayl uteh ev arioaunsd s eparate
componenotfst hed escripthieonnc;et ,h ev aluoef e achd uckc annobte
determinLeidk.e wiisnem ,a rketirnegs earacphp licattihoenv sa,l ueosf
individpuraold ufceta tutrheasmt a keu p thep roduct bundleb e cannot
ascertained.
Inc ontratshtes, e conadp proarcehl ileesso snt hea ccuraacnydc omplete­
nesosf a nyp articpurloadru bcutn dldee scripbtuitor na,t hmeorr eo nt he
accuracayn dc ompleteonfet shsep roducchta racterainsdft eiactsu urseesd
tod escrailbtleh eb undleIsnt. h iasp proacah s,t reapmo llut'ieovne nits'
vieweadso neo fm any possibelvee nstausnc,dht heo nuiss o nt her esearcher
tod etermaisne ex haustai sveeot f v ariabalsep so ssitbold ee scriebiet her
streapmo lluteivoenn itnsg eneroarle ,v entthsa fta lwli thian p articular
mutualelxyc lusciavtee gotrhyai tn clutdheese venitnq uestiSotna.t istical
desigtne chniqaureeus s edt os amplfer omt heu niverosfea lplo ssible
'eventthsa'at r es pannebydt hev ariabalnedts h ev alutehsa tth ev ariables
cant akoen i nt het ype(osfp) r obleomfi nterReastth.e trh abne inqgu es­
tionaebdo uat s ingelvee nitn d etatihle,r efcoornes,u mearrseq uestioned
abouat s amploefe vendtrsa wfnr omt heu niveorfsp eo ssiebvleen otfst hat
typeW.e refteort hilsa ttmeert hoads t hes tated-pre(fSePra)ep npcreo ach.
WhilCeV methodhsa vea ttracetnevdi ronntmaealn dn aturraels ource
economistatst'e ntfioornn e artlhyr edee cadeSsP,a pproacthoee sl iciting
consumperre ferehnacveneso tS.P m ethodhsa vree mainientd h ed omaionf
humand ecisiroens earmcahr,k etianngd,t ransportraetsieoanr ecvhe,n
thougshu ppofrotr t heiuser ine conomainca lywsaissf ormaliszoemde
timaeg o( McFadde1n9,8 6In)t .h ipsa petrh,e s tated-preference approach
iso utlinaendd,i tuss et ov alueen vironmeanmteanli tdieessc ribTehde.
advantagoefs S P teChniqubeost,hi nr elatitoon C V methodasn d
revealed-pre(fRePr)te encchen isq,au reea lsdoi scussed.
13.2T.H E STATED-PREFERENCAEP PROACH
Stated-prefaenraelnycsoeir st h,e e xperimeanntaally osfic sh oichea,si ts
rootisnc onjoiannta lysCiosn.j oiannta lyissia s f ormo fa nalyussiesdt o
462 W.L.A DAMOWICZ,P .CB.O XALL1,. 1L.O UVIEREJ,.S WAIT
repreisnednitv jiuddugaelm oefmn utlsat tit-ribsuttiem( uBlait asnedlL lo u­
vier1e91,9) C.o njoainnatl yissai wse ll-kntoecwhinn quaen dh asb ene
appliinem da rketfioonrvg e trw enyteya rHso.w ever, conjoint techniques
havmeo rer ecenbetelnya ppliiengd e ogprhayt,r antsaptoriaonnde, c noom­
ic(sse Leo uvi1e9r19e)T,.h ep artictuylpeoa fcr o njoainnatls ye sxiamined
heriest heex perimeanntaallyo sfci hso iTchei.ps a rctuilaaprp roisa ch
adoptbecaeused itp aarlltehlResa ndoUmt ilMiotdye( lR UM)s rutcture
(seMec Fadd1e9n7,B4 e;n -AkainvdLa e rman,1 98t5h)a itsc ommoinn
refereCnVdm uomd e(lMsi tcahnedCl alr so1n9,8a 9n)d diinrs ecte-choice
tralv-ecmoosdte (lBso cksettaa le1.l9, 19 ).
13.12 S.teipnsa nS PE xperiment
Theriesa c onsidelriatbelreta htaudtre es critbhesest etpos tbaek einn
designaiC nVge xperim(eMnitt cahnedCl alr so1n9,8 S9)i.m ilatrhleisyr ,e
a susbtanltiitaelr oantd ueriseg niSnPg e xperim(eLnotusv i1e9 r8e8,a ;
Hensh1e9r9,4 A) s.u mmaorfyt hSeP s teisp psr ovihdeerde with some
eloarbatoifot nhc eo mponperntess ebnetleodTw h.e se asrtbeea psseo dn
Henserh( 9194):
I.I dentifoiftc hasete oitfoa nt tributes.
2.S electthimene ga sureumneifntot er a caht tribute.
3.S pecificatoifto hnne u mbaenrd m agintuodfae t tribluetvee ls.
4.E xperimednetsailgn .
5.S urvienys trudmeseingtn .
6.M odeels timation.
7.U seo fp aramettoe rssi mcuhloaitcee .
Mosotf t hesstee aprse kwneolwJtn o C V researTcahsekr1ss- .3 be
can
conseirdetdh per eparoaftt hiioenn f onnatpihoaonsf eC V.C Vr esearchers
arceo cnernewdi tahc curparteest eantioofin n rfmoatiinoa nc lecaorn,c ise
fashiStoen1p.-s in3 S Pe xperimaetnttpesttm od esctrihbceeh oice inc ontext
thfeo nno fa ttriTbhuitisse,i s nm. a nwya ytsh,me o sitm poretlanentmto e f
anS Ps tudThyi.ss t aogfre e seatrycphi cianlvloyli vnefsot rmiaocno llection
from secsoonuderascfr,oy c gurso urpe seaarncdph r,e -teisnot ridnetgro
'
identtihaeft yt riboufat s eistu ataispo enr cebiyvt ehdree snpdoenantd t o
detennitnhleee voeftl hsae t tribiunat m easn netrha ctab ne u ndersbtyo od
thre espondIenbn ott.Ch V andS Pt hceo nceisrn w ith pretsheen ting
repsodnenwti tihn formatthiatothn e cya nu ndersatnadnr.de spotnod.
Ste4p i su niqtuoSe P ainsod n eo ft haed avntaogfet sh e appIrtois a ch.
discuisnds eetdba eilloS wt.e5 pi sa gacionm praabwlieta hC Vt asSku.r vey
designi mipso ritanan ntys tatreedf-epraepnpcreo aIcnSh P.t astkhsfe a ct
tharte sponmdaeynb teas s kteodc onsisdeevrec rhaolis ceeat nsd lmourl tiple
alternatives cwhiotischereita n i ases eaescot hf surveiys sduteehssai tgn
are
differfernoCtmV c onceTrnhse.sa era el sdoi sscsueind m ordee tbaeillo w.
METHODS FORV ALUINGE NVIRONMENTAALM ENITIES 463
Inr efereCnVdm uomd eelcso,n ommeotdreilci lsni encge sasnadtry h ese
modealrste h euns etdoc alcuwlealtfema eraes uTrheusss.,t e6pa sn d7a re
commotnoS Pa nCdV .H owevreerc,ea ndtv anicnte hsae n aloyfSsPit sa sks
halse tdo t hfien ditnhgat th edsaet sae tsbe ccaonm biwniedt ChV a nd/or
RP data toe nritchdhea tsao urTcheess. e fianrdiscusdesedi ngs inS ection
13.2A.l5s.so i,n ScPee mploaRy UsM formulawteilofanan,ra el aypspilsi ed
tot hemsoed eilnts h eec onomliictse rcaantbe u reem plotyoey di emleda ­
suroefcs o mpensvaatriinagft riotomhn Se P m odeTlhsi.as s peicdst i scussed
inS ect1i3o.n2 .6.
13.2.E2x.p erimDeenstiagln s
Oneo ft hfeu ndameanstpaeolcf St Psm ethoidsts h euisroe f e xperimental
desitgnosa rraayt tribauntdle esv eilnstc oh oisceetT sh.e riesa large
literoantt uhriteso paincd a general ctohnastteh niess suusaes rw ee ll­
unders(tBoaotdas nedlL lo uvi1e9r9eC1,a; r seotna l1.9,9 4G)i.v ean s et
ofa ttribauntdel se vedless,im gne thodsbe usetdo s trucptauirree d
can
compariscohnosis ceoetwr si tmho rteh atnw oa lternatives.
Thee xperimentaaplp-rcohpaoiciohcn ee beyrL eodu viaenrdhe i ass soci­
aterse qutihrreee ss eartcodh eesrib gno tthh 'ep rodduecstc'r iapntdti hoen s
choisceetT sh.e sdee scriaprtdeie osnisgnt eosd a titshfsety a tiasstsiucmapl­
tioannsdp roperotfvi aersi poruosb abidliissctriect em-ocdheoUlinscf.eo r­
tunataesld yi,s cubsysL eodu viaenrdWe o odwor(t1h9 8B3a)t,s aenldl
Louvi(e1r9e9 a1n)dB, u ncehta l(.1 99p2r)o,b abidliissctriect em-ocdh­oice
elasr neo n-liannedra ers,e airnctthoh c eo nstruocfdt eisoinwgn istd he sir­
ablset atiesffitciiceapnlrc oyp erftosirue csh mohdaebsla sr ely begun (see
Buncehta l1.9,9 f2o arr evioeftw h ilsi teraantdau dries cusosfti hoen
issuTehsu)st.,h c eu rrsetnatot fte h aer itnd esicgonn strufcodtrii socnr ete
depentd-evnarmioadbelilesss u cthh at atrhaeel raern guem boefrc onstruc­
tiotne chninqouwke nso wtnop roduce tdheasstai tgnists hpfery o perotf ies
thmeo dealnsdpe rmitth ied entifiocfaa w tiidroean n ogfem odel forms and
utislpietcy ific(asteeie.o,gn .s, aBnadLto suevlil1e 9r9eB1,u; n cehta f1.9,9 2;
LouviereC,h o1o9s9ai4mn)og.n agn yo ft hcea ndidateo ntd hebesa isgniss
ofs tatiesffitciiceahnloc wye,v er, erleumsbaieivcneas ou nsmeeu sktn otwh e
true voefpc rtoobra bial pirtiioteroosi p timainzype a rtidceuslaifrgo nr
efficieannco yb,v idoeussi ignm pedimenTth.e mroesctes ntta teomfet nhte
1
staotfte h aer itnt his areoant, h debi assceuds asnidco onnsc luosfit ohnes
WorkshoonEp x perimentaAln aClhyaosttii hcsDe eu kIen vitaCtoino­nal
fereonncC eo nsumer DecisainoCdnh oMiackei nBge havieotar f .( Carson,
1994c)o,n clutdheaadt n umbeorfd esicgno nstruacptpiroona acrhee s
I Iti ns otewotrhtaChtVy r eseahrafcsoh c uosneo dp tismtaalt ibsitddie csail(g Cnoso per,
199i3no) r dteore fficieensttliymt ahtiimesp orptaarnatm eStPre erse.a rocnth h,oe t hhearn d,
hacso ncentornea sttedi mtahtpiean rga meotfve arrsi aotutsr iobftu htceeh so iscei tuaitnai on
relat(iavletlhyno ouotgp ht imaelffilcyif)ea nsth ion.
464W .LA.D AMOWICZ,P .C.B OXALL1,. 1L.O UVIERE,1 .S WAIT
probaqbulisytt ea tisetffiicciabelunltttyh , af to nnaplr oofosf ptrhiosp erty
aruen avaliel.a b
Int hree seadrecshc ribbeeldoa w d,e sicgonn strutcetcihonnii sq ue
emplowyheidcw ha sfi rsptr oopsebdyL ouevriaen dW oodowrt(h1 983)
ands inacpep liinem da nye mpriicraels eaerffcohr( tes. sge.Ae,d amowicz
al1.9,9 S4w;a ietta i1.9,9 4Th)i.as p protarcehat thaset triobfua tlel s
et
comeptianlgt etrniav(eksn oaws'n f acitnto hrdese 's ilgiantt eurirnme a rket­
inagn sdt tais)ta incdts hrea issioactleedv aeslo sne l arfgcaet ordieasli gn.
Thed esipgnr oblceomn siosfst esl ecstaimnpglo efcs h oisceftesr otmh e
spascpea nnbeytd h aet triabnuldte evsse ulcsth h avtai rouisd entification
prorpteiceabsn e r eal.iI znte hdper esceanstteh ,ee v eunatwli sihts o t efsotr
vioiloanotsft hIeI pAr opeorfct eyr tparionb abiclhiosimtcoiedce l listk hee
conditlioogmnioatdl e (lM cFad1d9en7,4a )n,dt oe xlpormeo rgee enral
stochcahsotimicoced eflo nnsi nfe ceys.Hs eanrcteh,ce h oisecatens d t he
descri(pctailo'lnpesrfid ol eisnt' h mea kretilnigat teurraer)de e sigtnoe d
permtihtee s timaotfti ohmneo sgte nemroadle plo ssiwbhlieci,hnt his
casieMs c Fdadne'(s1 97M5o)t hLeorgi mto dle( seaels Moc Faddeanl .,
et
1977).
Whitlhees tatidsetsiicaagslnp oefcSP tc abne c onisderaenad d vagnet,a
carmues btet akteone nsutrheta htde e siigcsna ptutrihnsega lieelnetms e nt
oft hceh oipcreo ceIsnsc .a sweist h maatintybr utaensd /loerv etlhse,
potentniuamlb oerfc omnbaitiiosvn esr lya er.gE xpertiamdlee nsicgann
provais dtecr tuutrhea atl lotwheses tiimoaontf p aramehtoewresv,ae nrd ,
thdiess rigenq uiarsessum npsto ifzo ercoo eiffiecnotnsh igheri-notredre­r
actionesx.ma plFeom,ro sStP r eseaermcphl omyasi enff ecptlsat nhsa t
prectlhuaedn ela ysoifis n taecrtieoffenbc test weatetnr ibTuhtisesu sg.g ests
thaawt e ll-desSiPgs nteuddj yuls,ti a kw ee lls-idgenCeVds t urdeyq,u ai res
signiafimcoaunontftp re-wtoerstktoi denattiitfubryt else,v aenlidsm ,p ort­
anitn tcetria(oLnosiu evr1e9,8 8a).
Ani mpaorntats peocftt hdee sipgrno ciesst sh aatl ternactainv ebse
constrtuomc taeidn toaritnh ogoinnat lhiet ya ttrIincb ourntateststo.
revealfeedr-e(pnorcareec tual-dcahtowaih,cci hea )r oef tceonr retlhaitesd ,
propaelrltoytw hrsee seartcoih deern ticfoyn ttrthiieboo unfe acaht tribute
tot hceh oipcreo ceTshseu. s oef o rthogeoxnpaelr iamlde enstiignSn Ps
approaaclhsaeols l otwhsSe P d attaob e uasesad f orm 'eoxrnfta el
.'
informtaota ilolne'vc ioaltireni eitnayR P modlesS.P i nfmoarticoanben .'<
useidnat ypoefm ixeedts imatpiroonct eoas ddsr etshsii sss Huoew.e vine r,
ordteobr eu seidns ucah fashimoond,em lutsshb teee tsimajtioendtT lhyi.s""
aspoefcSP tm odeilses x amibneeldo w.
13.2.S3u.r vDeeys iCgonn siderations
Ana speocftS P expertiampler nocedtuhraeitss d ifferfernotCm V
approaicsth hedese teinnnatoifto hnne u mbaenrd soiftz hece h coeis et.
METHODSF ORV ALUINGE NVIRNOMENTALA MENITIES 465
Fore xamplienA, d amowiecz ta l(.1 994r)e,s pondewnetrspe r esenwtietdh
16c hoice asnedwt esr aes kedt oc hoos1e otfh e3 optioanvsa ilaTbhlee .
experimednetsailpg rno cegesnse rat6e4dc hoice bsuettt hsiw sa sd eemetdo
be tool argate a sfko arn yr espondenTth.u st,h e6 4s etwse rbel ockiendt 4o
setso f 1C6l.e artlhye,r esearcmhuesrtc onsidheorw m anyc hoisceet as
respondecnatn a ccuratealsys easnsd h owm anya lternatwiivtehsie na ch
choicsee cta nb ee xaminReedf.e rendCuVm m odeless sentiparlolvyi1 d e
choicsee wti t2h alternatives.i ntR hees eamracrhk letiitnegr astuugrgee sts
thaat respondcane nta ssefssa irllayr gneu mberosf c hoicsee tbsu tt hat
providmionrget ha6na lternatiwvietsh eianc h chsoeiitcs de i fficu(lBta tsell
and Louvie1r9e9,1 )H.o2w eveirn,m oste nvironmeanntaally csaisse tsh,e
researchiescr o ncernewdi tthh ea ttribbuetfeosra e c hange vaefrstueasr
changeT.h uss,t ructuerxipenrgi mewnitts2h o r3 a lternatsihvoeusrl edp res­
entr eailtqyu itwee llF.o rexam ple2, d esigneadl ternatciovuelsbd e p res­
enteadl onwgi tthh es taqutou.s
13.24M.o delE stimation
Int heS Pa pproatchher espondeinsat s ketdo s eletchtep refer'roebdj ect'
(describbyae tdt ribautvt aersi oluesv eflrso)ma c hoisceet E.a cha lternative
(zi)n t hec hoisceeht a sa na ssociated luetvirelelip trye sebnyt ed
Ui=V i+fi. (13). 1
(Vi)
Thisu tiliistc yo mposeodf a n objectciovmep onent anda n error
compone(neti I)n.t hee conomiclsi teratthuirfseu nctiiosan l skon owna s
ac onditiionndailr uetcitl ity funcittii soc no ndsiitnicoeon nt ahlec hoiocfe
theo bjec(ztS) e.l ectoifoo nn eo bje(cpta ckaogfea ttributoevse)ar n other
implitehsa tth eu til(iUtiyo) f t haotb jecitsgr eater tthhaeun t iloift y
j( �).
anothesra,y Sincoev eraultli liisrt ayn doomn e can aonnallyyt shee
probabiolfic thyo iocfeo nep ackaogvee arn otheorr ,
Pric{ h os=e Pnr}V {i+ f i> V; f+jV jE C}, (13.2)
wherCe ist hec hoicsee tS.p ecicfihco icoefs.e rrodri stribulteiaotdno s
methodfso rt hee stimatoifto hnep arametoefrt sh iust ilfiutnyc tiaonndt o
quantitarteipvree sentoaftt iroandse -boefftsw eaetnt ribAnut aesss.u mption
ofT ype Ie xtrevmael udeis tributed preordruorctseh sec onditional logit
specificatiooftn h ep robabioliftc yh oice, or
V
e ;
Pr{=i '"} v (13.3)
L...Jej
jEC
2 Providmionrtgeh a6n a lternatiispv oesss iibncl aes weist fhe wa ttriobrur teelsa tively
smiplceh oisciet uations.
466W .LA.D AMOWICZ,P .CB.O XALLJ,. JL.O UVIEREJ,.S WAIT
The Random UtiliMtoyd eld escriabbeodv ep roveisdt heb asifsor t he
experimecnhtoailcp-er ecesHso.w ever, mtohdiesli sa lstoh eb asifsor t he
refeenrdumm odeolf C V.T husb,o tthe chniqaureissf ero mt hes amteh eo­
reticbaalc kgrounSdP., howevert,y picaelnltya irlespe atemde asure
responfsreostm h ei ndividwuhaillC eV doenso t3.
Reveadl-epreefnecre( RPm)o delasl seom poly randomu tiltihteyo ry.
Typicatlhleysa er em odelosf r ecreationcahloi cseoir ts eo meo therf orm
ofq ualitcahtioviecT eh.e smeo delasr vee rpyo pulairn m easurecionngo mic
valuoefse nvrionmnetaqlu alicthya ng(eB ocsktaeetla l1.9,9 I1n)t h.i csa se
theo bjectciovmep onenotft heu tilfiutnyc tiioscn o mposeodf measoufr es
attribouftt ehse' real' alteSrnPa tteicvhensi.q duierse cptalrya ltlheels e
qualitacthioviecm-eo delsa,n d,m orevoerS,P a pprocaheasv oimde asure­
mente rroarn dc olianreiteyff ects coimnmR oPnm ethdos.
13.2J.o5i.nE ts timation RoPf,a nSdPC, V M odels
SincSeP ,R P,a ndC Vm odelasr ea lRla ndomU tiliMtoyd eltsh ecya nbe
estimajtoeidn telxyp,l oittihneig no frmatni aovalibalei ne acsho urcFeo.r
examplAed,a mowicetza l(.91 94j)oi netlsmyta itea SPa ndR P modeolf
recreatsiiotnceah lo icIen.t hicsa steh eS P anRdP u tilmiotdye lcsa nbe
speciafise d
URP VRP fRPa nd (31.4)
= +
Usp Vspf Sp, (31.5)
= +
wherReP i ndextehser eveeadl-prreefnecuet ilfiutnyc tni aondS Pi ndexes the
stated-preffuenrcetnicGoein v.e ans imisleaotrf a ttirbut(eosn e bsaesteo dn
thee xperimednetsailga nnd t heo thebra seodn actucaoln dititohneds a)t a
canbe 'sctkaedt'oe stimaatjoei nmto delH.o wevetrh,e varianicnte hste w o
datsae tmsa yb ed iffereInntm .u ltinomlioagilt modeilssc omimto nt o
assumteh atth es calpea ramteeresq ua1l. S4w aiatn dL ouvie(r91e9 3h)av e
develoapnea dp proatchha ets timattheers e latsicvaeel p aramet(etrhr ea tio
oft hsec aplaer ametferrmos e acdha tsae t). aTpphriosa cahl sfoa cilitthaet es
testoifnt gh se imilaorfti l}teym odel(se qualoifpt ayr aemtercso)n ditioonn al
thepo ssiboifld iitffye resncta leffee ctIsnp. r inciSpPl,e R,P ,an dC V models
cana lbel combinetdo u tileiffizcei entthleyi nfromatni ocontainewidthin
each data form.
13.2.We6l.f aMreea sures
SPm odelpsr voidees timaotfec so ndointiailn direuctti lfiutnyc tipoanr a-�
meterThse.r efeo,dr etrmeinatioonft heoreticcoarlrlemyce ta suroefws e lfar.e�
3 Thehrae s beseonmm eo vemetnotw aart dy peo fr epeatmeeda surreessp oinnCVse v itah e; ';,
dobule-beodou rnt dribpoluen-dreedfe enrduCVm mode(les. Hga.ne manenta l1.9,9 1).
4 Inm ultiinaollmo gimto deltsh,es c ale pacraanmnebotetei rd einftiTehedr.e ef.io tri s
commonalsys umebed u ntio ty.
METHODS FORV ALUINGE NVIRONMENTAALM ENITIES 467
(compensavtairniga tiisop no)s sibWleel.f amreea sures afrriosmmi unlgt i­
nomiallo gitm odelasr ew elkln own( Haneman1n9,8 B4o;c ksteaetal i .,
1991If)o n.e i si ntereisntt ehdev aluoefa ni mprovemaetno tn eo fs everal
availaablltee rnati(vee.sgr .ec reatisoint etsh)e nt hec omparisoofnt he
expectmeadx imuumt ilbietfyo arned a ftetrh ec hangbee comes the founda­
tioonf t hew elfaarnea lysis.
Iti sa lspoo ssibtlose t ructSuPr wee lfaarnea lyasliosn tgh el ineosf
referenCdVum m easureIsnr. e ferenCdVu mm odeltsh,e e xpectveadl ue
ofw illingnteosp sa yc anb ec alculaatste hdea reuan detrh ed istribution
oft hep robabiolfia tcyc epttihnegb id( Haneman1n9, 84T)he.m edian
welfamreea surcea nb ed escriabset dh ep aymenlte vetlh amta kest he
individiunadli fferbeenttw eetnh ei mprovemaenndtt hes tatquuos.S ince
theS Pm odelasr er andom utmioldietltysh ecya nb er earrantgode eds cribe
thep robabiolfic thyo iocfet hes taqtuusoa ttribvuetresstu hse ' improved'
attributes.
SPu tilfiutnyc tipoanr ametcearnbs e u setdo d escrtihbeme a rginavla lue
ofa changien a n attribAust seh.o wnb y Lareaaun dR ae( 198a9nd)
Mackenz(i1e9 9i3na) s,i mpllien emaord elt,h er atiooft hea ttribcuoteeffi ­
cietntot he' priccoee'ffi cipernotv idaem sa rginawle lfaerffee cTth.i wse lfare
value, hoiwsen voeter n,t irceolnys iswtietnthth eR andomU tilMiotyd eifl
thew elfaerffee cbte inegx aminiesda changien o neo fs everpaols sible
alternat(iev.eqgsu. a licthya ngaetso neo fm anyr ecreastiitoenIs n)s .u ch
a casien formatoinot nh ep robabiolfic thyo iocfet haatl ternatiisav les o
requir(esdeB eo ckstaeetla i1.9,9 1).
13.2.Po7t.e ntial AdvoafSn PtM aegtehso ds
Stated-prefmeertehnocdcesa nr evetahle v aluoef a ttribaustw eesl asl
thev aluoefm orec omplecxh angienss everaatlt ribuItnte esr.m osf e licit­
ingp referenscteast,e d-prefmeertehnocdsesi ,n cteh eya res tructuasr ed
choicehsa,v et hes ames urvedye signa dvantagaessr eferendCuVm
methodTsh.a ti st,h ere lwiikleblle yf e werre fusaanldts h ec hoiacpep roach
ism oref amiltioat rh er espondtehnatna 'paymeanptp'r oacHho.w ever,
ther epeatseadm plimnegt hoedm ployiendS P cana llevisaotmeeo ft he
concernrse gardilnogw eirn formatieoffincaile ntchya atff ectth er efer­
endumC V mode(lC arso1n9,9 1St)r.a tebgiech aviosuhro ulbdem inimal
inS Pt askssi ncteh ec hoicaersem adef romd escriptoifao tntsr ibauntde s
itw ilnlo tb ec leawrh icchh oicweil olv ero-ru nderreprae vsaelnuta tion.
Thep henomenoofn' yea-sayoiftnegna' r isiensC V taskass t her es­
pondenatpsp eatro b ev otinfgo ra ne nvironme'ngtoaolcd a useT'h.i s
phenomensohno ulndo ta risienS Pt askbse cautsheer espondewnitlbsle
choosifnrgo ma numbeorf d escriptoifso intsu atiroantsht,eh ra an single
bascea sceo mparetdoa ni mproved-sciatsuea tEimobne.d diinsga signi­
ficancto ncerni nt heC V litera(tKuarhen emaann dK netsc1h9,9 2S)P .
468W .L.A DAMOWICZ.P .CB.O XALL1.. 1L.O UVIEREJ..S WAIT
exercisese mabeddddridenisgrs e bcyth layv irnegs ponidmepnltisvc ailtuley
comopnnetsA.lt ernateimvbeeldyd,ei ffnegcc tasbn e t esatsep da rotfa nS P
design.
Statperde-fermeentcheoc dasnb eu seadsc omplemteoCn Vt sa nd RP
mehtodosr sausb stiTthuetye sb.ec omplemientn htast i ntofhrem ation
can
frotmh easpep roaccahbnee cs o mbitnoey di ealr di cohveerr raelsl(u Slwta it
andL ouiver1e9,9A 3d;a moweitca zl1 .9,9 S4w;a it 1e9t9 4Ta)hl.e.can y, be
susbtitsuitnescste a ted-prmeeftehrooedntns hc eeoi wrna rree pernetsations
ofi ndivicdhuoaiclcoe n siwstietRnhat n doUmt ilTihteyo rFyu.r trhmeore,
SPc ane xamisniet ua(taitotnrsi lbeuvtetelhssad,)to n oetx iisnct u rrently
avlaaibolpet ioInnss u.c cha seRsP, i sl imiitnes dc opsei nictre e loine s
currentalvya ilaatbtlrei ibnu tegse nebreahtaivnigro euprratelas teinoofn s
choice.
13.3E.X AMPLESO F STATEDP-REFERENCMEE TIIODSI NE NVIRONMENTAL
VALUATION
Whilteh eu seof S Pt echniiqneu nevsi ronmveanltuaalit isro enl atively
recent,h atvhbeee reaen f ewn otewoerxtahmy plLeasr.e aaun dR ae
(9189s)t udtiheveda luoefo dour reduuscitani gto ynposef SmPo del.
Theays keidn divitdoru aanlaksl ternactoimvbei naotfio odnosuc ro ntact
numberasn di ncrehaosuesde hcoolsdtR sa.e( 198e3m)p loySePd-t ype
tecqhuneiisn t hea nalyosfib sen efiftrso ami r quiamlpoirvteym ents.
Macken(z1i9e9 h3a)se mploySePd- tytpeec hnitqoue exsa mitnrea de­
offsb etweaetnt riboufrt eecsr eathiuonntaielnx gp erieMnaccekse.n zie
comparaev sa rioefSt Pym ethoadnsdi ltlruashtoewsm anoyf t hetseec h­
niquceasnb ed esignteodc orreswpiotnhd Rtahned oUmt ilMiotdye L
Opaluectha l(.1 99e3m)p loypeadi rwcihsoei cienas n S P framework
toa nalhyaszea rdwoaussst iet diencgi sViiosncseu.tas li( .1 99e1m)p loyed
SP-type teicnah nnailqyuhseeisan lgrt ihst kr ade-Gooffosd.m an (1989)
examines housinigna nSa Pt tfrriabmuetw(eossre kae l sFor eeman,
1991).
Adamoweitac lz(. 1 99e4m)p loayc ehdo ice-exdpeesriignmv eatnlottu h ee
impaocfta waterre soudrecyee lopTmheinmsto .d ewla sc onscttretudo
exanmeir ecreastiictoheno ailTc hee.ay l seox amianr eedv earleefde-rpence
modeolfs ictheo iacnedc, o mbitnhetedw oa pproachest.h ieAn mtoenrg­
estfinidnign gfsr otmh sitsu wdayst hfea ctth atthR eP a nSdP m odewlesr e
nots ignificantdliyff er(eonntct eh edi ffereinntc hesesc aflaec twoerrse
accounftoerd) .
Whilteh earrere e latfievewex laym polfse tsa ted-prsetfuedirintee hnsec e
environmveanltuaafilte iloidnti, sp robatbhlateth iasr eoafr eseawilrlc h
inrcearsaep iAdnloyt.h eexra mpolfSe Pa ndCV i sn owp resenbtaesoden,d
reasrecihnA lberta.
METHODSF ORV ALUINGE NVIRONMENTAALM ENITEIS 469
13.4R.E CREATIONAQLU ALITYIM PROVEMENTS: AN APPLICATIOONF
STATED-PREFERENCEAN D CONTINGENTV ALUATION
13.14..T heV aluatoifoR ne creatiSointQaeul a liItmyp rovements
Asa t esotfs tated-preafnedrc eonnctei ngveanltu attieocnh niqau reess earch
projeicntv olvtihnegv aluatoifor nec reatiohnuanlt iqnuga liitmyp rove­
mentwsa su ndearktenT.hi sp articaucltairv pirtoyv idaenes x celleonptp or­
(I)
tuniftoyrt het estionftg h esper ocedubreecsa uset:h eriesa substantial
literaotnuv rael uiqnuga licthya ngiensr ecreataicotniavli (t2it)ehs ae;c tivity
isw ell-deafinndet dh eq ualiattyt ribaurtete ysp icawlellyl underbsyt thoeo d
responde(n3tt)sh; ef actth aitn dividturaalvtseo rl e creatiopnr osviitdaee ss
realisptaiycm envte hicalned;( 4o)n ec anc onstrau ccto rresponding
reevaled-prefmeordeenolcf re e creathiuonntailbn egh aviour.
Thep urpoosfet her esearwcahst oe stimattheev aluoef m ooseh abitat
improvemeinngt esn erraalt,h tehra tnh ev aluoefa singhlaeb itiamtp rove­
mentH.o wevetro,t hee xtetnhta tth ef undamenvtaarli abtlheasit n fluence
moosheu nteorrso 't heorb servvearlsu'a tioofhn asb itat cahraeun ngdeesr ­
stooidt,s houlbde p ossinbolteo nltyo e stimattheev aluoef a particular
habitat chbauntag les,to o v aluteh ec omponenotfhs a bitcahta ngiens
genaerlr,e gardolfelsosc atainodne xteTntot. h iesn dt,h erefeoxrpel,o ratory
reseawracshu ndertawkietnsh a mploefsm oosheu nteirnas r ealsi ketloby e
affectbeydt hep roposheadb itcahta nget(osd )e termhionweh untetrhsi nk
andt alakb ou(t)1 m oosheu ntiinngg e neraanld( 2i)m provemeinnht asb itat
ast heayff ectth eq ualiotfty h em oosep opUlattihoantt h ehyu nti np arti­
culaFrr.o mt hiesx plorarteosreya irtcw ha sp ossitbold ee termtihneke i nds
ofv ariabalnedsr ,a ngoefsv aluoefst hosvea riabtlheaswt,o ulbde l iketloy
influencmeo oseh unters' valoufah tabiiotncasht a ngeTsh.e svea riables
coultdh ebne r elatteosd p eciwfiicl dlmiafnea gemeanctt ioannsdm easure­
menttsh acto ulbde t aketno i mprohvaeb itcaotn ditions.
Thes tudsyp ecificfaolcluyso endc hangperso posfeodra p articWuilladr­
lifMea nagemeUnnti t( WMU)i nw est-cenAtlrbaelrC taan,a dTa.h issi tua­
tiopnr ovidaende xcelloepnpto rtutnoic toym parter aditieovneanlt,- specific
CV valuatwiiotnth h eS Pa pproaTchhu.s t;h ep roblwema sc onceptualized
aso neo fh untecrhso osianmgo nga lternatWiMvt,Tes whiccho mpetfeo r
thetiirm aen de fforNto.t s urprisibnecgaluyst,eh er eseadrecahlw ti tahr eal,
existriengigo no fW MUs, itw asa lspoo ssitbola es certwahienr heu nters
wentl ast taone ds timatev atlhuoeef e acWhM U, andp ossiibtlcsyh ar­
acteris(tdiecpesn dionngt hes tatisptriocpaelr otfit ehsep artiCsUalmaprlo ef
WMUs int her egionu ndesrt udyu)s,i ntgr avel-acpopsrto achTehseS. P
studwya sd esignetdor esembal ter avel-ecxoesrtc iinsa esm anye ssential
detaialssp ossibhleen:c et,h eS P studwya sd eliberaftoerlmyu lattoe d
resemblteh ep roblefma cedb y huntearssm easuriendt het ravel-cost
approach.