TY - JOUR
T1 - Accounting for afforestation externalities
T2 - A comparison of contingent valuation and choice modelling
AU - Mogas, Joan
AU - Riera, Pere
AU - Bennett, Jeff
PY - 2005/1
Y1 - 2005/1
N2 - One issue faced by those using social cost-benefit analysis to make decisions on forestation is how to account for environmental externalities. This paper compares two different valuation techniques, contingent valuation and choice modelling. Both approaches were applied to an afforestation programme in the northeast of Spain, and were found to yield similar estimates of welfare change when the utility function was fully specified. However, when elements of the utility function were omitted, significant differences were detected in the welfare estimates derived from the two techniques. Choice modelling is the method recommended for use in policy evaluation contexts, such as cost-benefit analysis applications, because of the additional valuation information it provides.
AB - One issue faced by those using social cost-benefit analysis to make decisions on forestation is how to account for environmental externalities. This paper compares two different valuation techniques, contingent valuation and choice modelling. Both approaches were applied to an afforestation programme in the northeast of Spain, and were found to yield similar estimates of welfare change when the utility function was fully specified. However, when elements of the utility function were omitted, significant differences were detected in the welfare estimates derived from the two techniques. Choice modelling is the method recommended for use in policy evaluation contexts, such as cost-benefit analysis applications, because of the additional valuation information it provides.
KW - Choice modelling
KW - Contingent valuation
KW - Forest externalities
KW - Policy evaluation
KW - Welfare measures
UR - http://www.scopus.com/inward/record.url?scp=15244351100&partnerID=8YFLogxK
U2 - 10.1002/eet.372
DO - 10.1002/eet.372
M3 - Article
SN - 0961-0405
VL - 15
SP - 44
EP - 58
JO - European Environment
JF - European Environment
IS - 1
ER -