Economics

Stated preferences for intermediate versus final ecosystem services: Disentangling willingness to pay for omitted outcomes

Document Type

Article

Abstract

Stated preference scenarios often provide information on intermediate biophysical processes but omit information on the resulting final services that provide utility. This may cause respondents to speculate about the effects of intermediate outcomes on their welfare, leading to biased welfare estimates. This work clarifies distinctions between intermediate and final ecosystem services within stated preference valuation and develops a structural model by which to infer respondents' speculations when a final ecosystem service is omitted. The model also derives implications for welfare estimates. Methods and results are illustrated using an application of choice experiments to fish restoration in Rhode Island's Pawtuxet watershed. Copyright 2013 Northeastern Agricultural and Resource Economics Association.

Publication Title

Agricultural and Resource Economics Review

Publication Date

2013

Volume

42

Issue

1

First Page

98

Last Page

118

ISSN

1068-2805

DOI

10.1017/S1068280500007644

Keywords

choice experiment, choice modeling, ecosystem service, river restoration, valuation, willingness to pay

Link to Full Text

Share

COinS