Does one size really fit all? Ecological endpoint heterogeneity in stated preference welfare analysis

TY - JOUR

T1 - Does one size really fit all? Ecological endpoint heterogeneity in stated preference welfare analysis

AU - Jensen, Anne Kejser

AU - Johnston, Robert J.

AU - Olsen, Søren Bøye

PY - 2019/8/1

Y1 - 2019/8/1

N2 - Obtaining valid stated preference welfare estimates for changes in biophysical systems requires identification of the ecological endpoints valued by respondents. Challenges for scenario design can occur if endpoints differ across respondents, because it may be infeasible to provide scenario information on all possible endpoints. We explore an approach to choice experiments that tailors attributes to empirically identified population groups. Results suggest that different endpoints are relevant to different groups, and that one-size-fits-all scenarios common in the literature may not enable valid welfare estimation for all groups. These findings suggest that endpoint heterogeneity should be considered when designing valuation studies. (JEL Q51).

AB - Obtaining valid stated preference welfare estimates for changes in biophysical systems requires identification of the ecological endpoints valued by respondents. Challenges for scenario design can occur if endpoints differ across respondents, because it may be infeasible to provide scenario information on all possible endpoints. We explore an approach to choice experiments that tailors attributes to empirically identified population groups. Results suggest that different endpoints are relevant to different groups, and that one-size-fits-all scenarios common in the literature may not enable valid welfare estimation for all groups. These findings suggest that endpoint heterogeneity should be considered when designing valuation studies. (JEL Q51).

U2 - 10.3368/le.95.3.307

DO - 10.3368/le.95.3.307

M3 - Journal article

SN - 0023-7639

VL - 95

SP - 307

EP - 332

JO - Land Economics

JF - Land Economics

IS - 3

ER -