Valuing improved wetland quality using choice modeling

Abstract

The main stated preference technique used for estimating environmental values is the contingent valuation method. In this paper the results of an application of an alternative technique, choice modeling, are reported. Choice modeling has been developed in the marketing and transport applications but has only been used in a handful of environmental applications, most of which have focused on use values. The case study presented here involves the estimation of the nonuse environmental values provided by the Macquarie Marshes, a major wetland in New South Wales, Australia. Estimates of the nonuse value the community places on preventing job losses are also presented. The reported models are robust, having high explanatory power and variables that are statistically significant and consistent with expectations. These results provide support for the hypothesis that choice modeling can be used to estimate nonuse values for both environmental and social consequences of resource use changes.