Accounting for negative, zero and positive willingness to pay for landscape change in a national park

N. Hanley, S. Colombo, B. Kriström, F. Watson

    Research output: Contribution to journalArticlepeer-review

    42 Citations (Scopus)

    Abstract

    In contingent valuation, despite the fact that many externalities manifest themselves as costs to some and benefits to others, most studies restrict willingness to pay to being non-negative. In this paper, we investigate the impact of allowing for negative, zero and positive preferences for prospective changes in woodland cover in two UK national parks, the Lake District and the Trossachs. An extended spike model is used to accomplish this. The policy implications of not allowing for negative values in terms of aggregate benefits are also investigated, by comparing the extended spike model with a simple spike making use of only zero and positive bids, and a model which considers positive bids only. We find that ignoring negative values over-states the aggregate benefits of a woodland planting project by up to 44%.
    Original languageEnglish
    Pages (from-to)1-16
    Number of pages16
    JournalJournal of Agricultural Economics
    Volume60
    Issue number1
    Early online date26 Sept 2008
    DOIs
    Publication statusPublished - 16 Feb 2009

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