Investigating distance effects on environmental values: a choice modelling approach*

Analysis of the relationship between distance and willingness to pay (WTP) is important for estimation and transfer of environmental benefits. Several contingent valuation (CV) studies have investigated this topic, but results are mixed. This paper describes a choice modelling (CM) application that estimates distance effects on parameters of three environmental attributes. Combinations of these attributes create different management policies for native vegetation. The CM study is based on a sampling procedure that provides a geographically balanced sample and statistical tests to choose the best specification of the distance–WTP relationship. Welfare analysis shows that disregarding distance causes under‐estimation of individual and aggregated benefits and losses, seriously misdirecting resource allocation.     

Conflicting preferences among tourists and residents

In this paper we present the results of a choice modelling (CM) experiment designed to estimate preferences of residents and tourists in Alghero, Sardinia (Italy). In 2004 Sardinia’s regional government introduced a set of reforms on coastal development and environmental protection that had important consequences for the tourism industry. The CM experiment took place in 2006, and aimed to study both resident’s and tourists’ preferences regarding the 2004 reform and other tourist development alternatives. We also assess the hypothesis that the perceived social and environmental effects of tourism differ among classes of respondents. The analysis indicates that there are conflicting preferences within the host community as well as between the host community and tourists. This creates a mismatch between residents’ supply and tourists’ demand of recreational services that needs to be addressed to promote the best tourist development strategy. It also shows that the 2004 reform is not such an effective strategy as it matches neither resident’s nor tourists’ preferences.