Using Discrete Choice Experiments to Derive Individual-Specific WTP Estimates for Landscape Improvements Under Agri-Environmental Schemes: Evidence from the Rural Environment Protection Scheme in Ireland

27 Pages Posted: 21 Feb 2006

See all articles by Danny Campbell

Danny Campbell

Queen's University Belfast

W. George Hutchinson

Queen's University Belfast

Riccardo Scarpa

University of Waikato - Management School

Date Written: February 2006

Abstract

Reported in this paper are the findings from two discrete choice experiments that were carried out to address the value of a number of farm landscape improvement measures within the Rural Environment Protection (REP) Scheme in Ireland. Image manipulation software is used to prepare photorealistic simulations representing the landscape attributes across three levels to accurately represent what is achievable within the Scheme. Using a mixed logit specification willingness to pay (WTP) distributions based on the parameter estimates obtained from the individual conditional distributions are derived. These estimates are subsequently adjusted and combined to account for baselines and levels of improvement resulting from the implementation of the REP Scheme. Individual-specific WTP estimates are thus obtained for the contribution of the Scheme to rural landscapes and are subsequently contrasted with the average cost of the Scheme across the Irish adult population. Results indicate that the Scheme contributes substantial benefits to rural landscapes.

Keywords: Agri-environment, Discrete choice experiments, Individual-specific WTP, Mixed logit

JEL Classification: Q51, Q24

Suggested Citation

Campbell, Danny and Hutchinson, W. George and Scarpa, Riccardo, Using Discrete Choice Experiments to Derive Individual-Specific WTP Estimates for Landscape Improvements Under Agri-Environmental Schemes: Evidence from the Rural Environment Protection Scheme in Ireland (February 2006). FEEM Working Paper No. 26.2006. Available at SSRN: https://ssrn.com/abstract=884443 or http://dx.doi.org/10.2139/ssrn.884443

Danny Campbell (Contact Author)

Queen's University Belfast ( email )

David Leir Building
Belfast, BT9 5AG
Ireland

W. George Hutchinson

Queen's University Belfast ( email )

David Leir Building
Belfast, BT9 5AG
Ireland

Riccardo Scarpa

University of Waikato - Management School ( email )

Hamilton
New Zealand

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