The Impact of Latent Risk Preferences on Valuing the Preservation of Threatened Lynx Populations in Poland

23 Pages Posted: 4 Apr 2016

See all articles by Dr. Anna Malgorzata Bartczak

Dr. Anna Malgorzata Bartczak

University of Warsaw - Faculty of Economic Sciences

Petr Mariel

University of the Basque Country

Susan M. Chilton

University of Newcastle - Economics

Jürgen Meyerhoff

Technische Universität Berlin (TU Berlin)

Date Written: April 2016

Abstract

A recent innovation in stated preference environmental valuation surveys is to acknowledge uncertainty associated with scientific predictions about ecological outcomes, complexity of management actions and potential difficulties in implementing environmental programs. Still little is known about how individuals assimilate and respond to outcome uncertainty, particularly in terms of how it affects their stated valuations. In this paper, we focus on the impact of individual risk preferences on willingness to pay for conservation of threatened species. Risk preferences are elicited through a standard incentivised multiple price list and preferences for the conservation of the two main lynx populations in Poland through a discrete choice experiment. To account for the uncertainty associated with imprecise scientific knowledge about environmental outcome, attributes in the choice experiment are presented as conservation status in terms of descriptive, non‐numerical categories. The results from the multiple price list and the choice experiment are jointly analysed in a latent variable model by assuming that the responses to both are driven by the same preferences. We find that the latent risk preferences are linked to choices of the status quo option, which is the riskiest option in terms of the survival of the endangered lynx populations.

Keywords: choice experiment, hybrid latent class model, lottery experiment, lynx preservation, risk preference

Suggested Citation

Bartczak, Dr. Anna Malgorzata and Mariel, Petr and Chilton, Susan M. and Meyerhoff, Jürgen, The Impact of Latent Risk Preferences on Valuing the Preservation of Threatened Lynx Populations in Poland (April 2016). Australian Journal of Agricultural and Resource Economics, Vol. 60, Issue 2, pp. 284-306, 2016, Available at SSRN: https://ssrn.com/abstract=2758404 or http://dx.doi.org/10.1111/1467-8489.12123

Dr. Anna Malgorzata Bartczak (Contact Author)

University of Warsaw - Faculty of Economic Sciences ( email )

Krakowskie Przedmiescie 26/28
Warszawa, Pl-00681
Poland
+48-22-8314725 (Phone)

HOME PAGE: http://www.en.woee.pl/team/anna-bartczak.

Petr Mariel

University of the Basque Country

Barrio Sarriena s/n
Leioa, Bizkaia 48940
Spain

Susan M. Chilton

University of Newcastle - Economics ( email )

Newcastle-upon-Tyne NE1 7RU
United Kingdom

Jürgen Meyerhoff

Technische Universität Berlin (TU Berlin)

Straße des 17
Juni 135
Berlin, 10623
Germany

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