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Stated Preferences for Intermediate versus Final Ecosystem Services: Disentangling Willingness to Pay for Omitted Outcomes

Published online by Cambridge University Press:  15 September 2016

Robert J. Johnston ,
Eric T. Schultz ,
Kathleen Segerson ,
Elena Y. Besedin  and
Mahesh Ramachandran
Robert J. Johnston*
Affiliation:
George Perkins Marsh Institute and a professor in the Department of Economics at Clark University, Worcester, Massachusetts
Eric T. Schultz
Affiliation:
Department of Ecology and Evolutionary Biology, University of Connecticut at Storrs
Kathleen Segerson
Affiliation:
University of Connecticut at Storrs
Elena Y. Besedin
Affiliation:
Environment and Resources Division of Abt Associates, Inc
Mahesh Ramachandran
Affiliation:
School of Forestry and Environmental Studies, Yale University
*
Corresponding Author: Robert J. Johnston ▪ George Perkins Marsh Institute ▪ Clark University ▪ 950 Main Street ▪ Worcester, MA 01610 ▪ Phone 508.751.4619 ▪ Email [email protected].
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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.

Keywords

choice experimentchoice modelingecosystem serviceriver restorationvaluationwillingness to pay
Type
Selected Papers
Information
Agricultural and Resource Economics Review , Volume 42 , Issue 1 , April 2013 , pp. 98 - 118
Copyright
Copyright © 2013 Northeastern Agricultural and Resource Economics Association 

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