Choice Experiment Method Research Articles

Economic assessment of ecosystem services with a novel concept of elevation: An application of the discrete choice experiment method

AbstractThis research was conducted in the Hei River Basin of China to understand respondents' willingness to pay (WTP) for ecological services towards sustainable river system management. A discrete choice experiment is used to gauge respondents' preferences. In addition, elevation was introduced as a novel spatial attribute to account for heterogeneity. Primary data from 1680 respondents were collected across the Hei River Basin. The elevation of the river was categorized into five ad hoc elevation ranges to analyze the potential effects of elevation on environmental attributes. These samples were stratified as 1000–1600 m, 1601–2200 m, 2201–2800 m, 2801–3400 m, and 3401–4000 m. Pooled data results showed that the maximum WTP was for water quality, that is, 142.05 RMB, without considering the effect of elevation. However, when the interaction with elevation was included, the amount decreased to 133.52 RMB. Likewise, elevation‐based group estimates showed a varied pattern of spatial preference, with different preferences for each distinguishing attribute. Group A prioritized water quality (92.81 RMB) and the East Juyan area (4.12 RMB). In contrast, Group B preferred the guaranteed rate of irrigation of farmland (3.50 RMB) and reduced sandstorm frequency (17.90 RMB). Leisure and entertainment conditions had the lowest WTP across all groups (0.09–0.50 RMB). These findings highlight the importance of incorporating respondents' preferences in restoring and maintaining river systems. Additionally, it emphasized the need to consider respondents' socioeconomic characteristics when developing sustainable management policies.

Assessing the impact of farmers’ willingness to pay on different cultivated land attribute levels in China: an empirical analysis using the choice experiment method

Exploring farmers’ willingness to pay (WTP) for cultivated land protection and its influencing factors is key to promoting their enthusiasm for participating in cultivated land pollution governance. However, existing studies often overlook the differences in farmers’ preference for different levels of cultivated land attributes and the issue of intertemporal choice in farmers’ WTP, thus lowering the effectiveness of cultivated land protection policies. Using survey data from 646 small farmers in Shandong, Jiangsu, and Zhejiang provinces of China, this study empirically analyzes the impact of time preference on farmers’ WTP for cultivated land attribute levels by utilizing the choice experiment method, measures the relative importance of different cultivated land attributes and attribute levels to farmers, and calculates farmers’ WTP for different cultivated land attribute levels. The results revealed that farmers are generally reluctant to pay for cultivated land protection. Time preference affects farmers’ WTP for different levels of cultivated land attributes, with future-biased preference increasing farmers’ WTP and present-biased preference inhibiting it. Furthermore, for farmers, the relative importance of cultivated land attributes is in the order of cultivated land quality, cultivated land surrounding landscape and ecological environment, cultivated land social security function, and cultivated land area. The most crucial cultivated land attribute level is the improved cultivated land quality, with an average WTP of 3290.625 CNY per hectare (approximately 459.117 USD). In contrast, the least important cultivated land attribute level is the unchanged cultivated land area, with an average WTP of 1001.250 CNY per hectare (approximately 139.697 USD). The economic benefits of cultivated land protection in the sampled provinces can reach 353.892 million CNY per year (approximately 49.376 million USD) annually, which is calculated based on vegetable planting area. Our results suggest that the government should diversify farmers’ sources of income while increasing the amount of income, thereby reducing barriers to farmers’ payment. Simultaneously, farmers’ time preferences should be considered to guide them toward expecting long-term benefits and encouraging their active participation in cultivated land pollution governance. Moreover, cultivated land protection policies should match the preference of farmers for cultivated land attributes and attribute levels, and a limited fiscal fund should be allocated to the cultivated land attributes (i.e., cultivated land quality) and attribute levels (i.e., improved cultivated land quality) preferred by farmers to improve policy efficiency. This study highlights the importance of encouraging farmers to actively participate in cultivated land pollution governance and improving the allocation efficiency of the government’s cultivated land protection fund.

Investigating aquaculture farmers' preferences for multiobjective green production schemes: A discrete choice experiment in China

In recent years, the objectives of green agricultural development have increasingly diversified, incorporating food safety, pollution control, and resource conservation. This diversification has further heightened the potential for conflicts between policy objectives and the individual interests of farmers. Understanding farmer trade-offs with respect to multiobjective green production (MOGP) policies is crucial for the comprehensive implementation of agricultural green development policies. The green and healthy aquaculture action (GHAA) encompassing multiple green technology objectives promoted by the Chinese government provides a favorable policy context. On the basis of the policy background of the GHAA, this study utilized the choice experiment method (CEM) to explore the preferences of aquaculture farmers for various green technology objectives and supporting measures. The results indicate that aquaculture farmers are willing to make trade-offs among various green technology objectives with the support of specific measures to transform traditional production methods. Farmers have varying preferences for different green technology objectives. Overall, they tend to prefer implementing compound feed utilization but are averse to implementing aquaculture effluent treatment. In terms of support measures, providing technical guidance is more effective than providing aquaculture insurance in incentivizing farmers to participate in MOGP schemes. Further analysis indicates that there are three latent preference classes, which differ in their preferences for green technology objectives and support measures. Age, gender, aquaculture area, risk preferences, and participation in cooperatives explain the probability of preference class membership.

The role of local adaptive capacity in marine ecotourism scenarios

Understanding and enhancing local adaptive capacity is crucial for the sustainable development of marine ecotourism. This research explores the adaptive capacities of local stakeholders in the West Bali National Park (WBNP), Indonesia, focusing on marine ecotourism. The research uses a mixed-methods approach, combining stakeholder interviews and a comprehensive questionnaire based on the choice experiment method. This approach ensures a holistic exploration of the dynamics of marine ecotourism in the WBNP. The investigation focuses on three key scenarios: understanding the evolving needs of contemporary tourism facilities (infrastructure adaptability), promoting the integration of indigenous traditions into ecotourism ventures (cultural consciousness), and combining both infrastructural and cultural aspects into a comprehensive adaptive strategy (holistic approach). The insights gathered in this research serve as a guide for marine ecotourism strategies, emphasizing the importance of innovative and adaptive approaches for the future of sustainable ecotourism in the WBNP.

Contingent valuation versus choice experiment: estimating the willingness to pay for organic oranges in Vietnam

PurposeThe study estimates the willingness to pay for organic oranges and identifies its influencing factors among consumers in the Mekong Delta, Vietnam.Design/methodology/approachThe study used survey data from 413 households in the Mekong Delta from March 2022 to July 2022. The choice experiment (CE) and contingent valuation method (CVM) were employed to analyze consumers’ willingness to pay (WTP). STATA 17 software was used to analyze research data in the logit model and mixed logit model.FindingsThe research results from the CVM approach show that a number of demographic characteristics have a direct impact on WTP, such as education, educational attainment, family size, the presence of children and the elderly in the household, food safety and environmental awareness. The CE model shows product attributes that influence consumers’ WTP, such as country of origin, traceability, quality grade, organic certification, ecolabel and organic content. Both approaches show that price is the main barrier to organic orange consumption.Research limitations/implicationsThe study surveyed four large cities in four provinces representing the Mekong Delta region.Practical implicationsOur study helps administrators have a deeper insight into consumer preferences and behavior, specifically the factors that affect consumers' WTP, an important indicator of demand for the success of manufacturers and marketers in developing as well as improving marketing strategies. Knowledge of a product’s WTP on behalf of (potential) customers plays an important role in many areas of marketing management, such as pricing decisions or new product development.Social implicationsFurthermore, this understanding will inform policymakers about the future of agricultural markets in Vietnam and help them better prepare for the making of sustainable agricultural policies. Develop organic agriculture to both protect human health, protect the living environment and protect the soil from degradation, ensuring sustainable agricultural production. This is also one of the measures to help people stay away from diseases to limit the social burden.Originality/valueThe study confirms that both CVM and CE models can be used to estimate WTP. However, CVM fits the overall WTP estimate, while CE is more appropriate when estimating WTP for individual scenarios through combining attributes with different levels.

Are farmers willing to pay for low-carbon agriculture? Evidence from China

PurposeReducing carbon emissions in agriculture is vital for fostering sustainable agricultural growth and promoting ecological well-being in rural areas. The adoption of Low-Carbon Agriculture (LCA) by farmers holds great potential to accomplish substantial reductions in carbon emissions. The purpose of this study is to explore the farmers' preference and willingness to engage in LCA.Design/methodology/approachThis study employs the Choice Experiment (CE) method to examine farmers' preferences and willingness to adopt LCA, using field survey data of 544 rural farmers in the Weihe River Basin between June and July 2023. We further investigate differences in willingness to pay (WTP) and personal characteristics among different farmer categories.FindingsThe empirical results reveal that farmers prioritize government-led initiatives providing pertinent technical training as a key aspect of the LCA program. Farmers' decisions to participate in LCA are influenced by factors including age, gender, education and the proportion of farm income in household income, with their evaluations further shaped by subjective attitudes and habits. Notably, we discovered that nearly half of the farmers exhibit indifference towards LCA attributes.Originality/valueTo the best of the authors' knowledge, this study is the first to investigate farmers' attitudes toward LCA from their own perspectives and to analyze the factors influencing them from both subjective and objective standpoints. This study presents a fresh perspective for advocating LCA, bolstering rural ecology and nurturing sustainable development in developing nations.

Patient preferences for models of care for fibromyalgia: A discrete choice experiment.

Fibromyalgia is a common reason for referral to a rheumatologist and is a centralised pain state with symptoms beginning in adolescence/early adulthood and manifests as pain throughout the body, fatigue and cognitive dysfunction. Whilst there is considerable evidence on effective treatments, diagnosis and management are complex. There is almost no evidence on how to organise health services to deliver recommended therapies. The aim of the current study was to understand patient preferences for different features of healthcare services for fibromyalgia. We use the Discrete Choice Experiment Method (DCE), a choice-based survey that quantifies preferences for attributes of goods, services or policy interventions, to elicit preferences in relation to alternative models of care for people with fibromyalgia. In this study, attributes describe different models of care for fibromyalgia. We based attributes and levels on earlier phases of the PACFiND project and a literature review on fibromyalgia models of care. The final analysis sample consisted of 518 respondents who completed the survey in full. The final analysis sample consisted of 518 respondents ((patients living in the UK, over 18 years old, with a diagnosis of fibromyalgia), who completed the survey in full. The model of care most preferred is one characterised by earlier diagnosis and ongoing management by a Rheumatologist, via Face-to-face or Phone/video call appointments, with a stronger preference for the latter mode of support. The most preferred treatment was Medication, followed by Physical Therapy, with the least preferred being Talking Therapy. Relative to a Waiting Time for treatment of 6 months, respondents would prefer a lower Waiting Time of 3 months and dislike waiting 12 months for treatment. Respondents showed willingness to receive Ongoing Help and Advice by a Nurse Practitioner or a GP, instead of a Specialist Rheumatologist, provided they were compensated by other changes in the model of care. This study has found that, although respondents express a preference for specialist care, provided by a Rheumatologist, they may be willing to trade-off this preference against other features within a model of care. This willingness to accept a different skill-mix (e.g., appointments with a GP or a Nurse Practitioner) has important implications for practice and policy, as this is a more feasible option in settings where the availability of specialist care is highly constrained.

Front row or backstage? Evidence on concert ticket preferences from a discrete choice experiment

Sophisticated ticketing practices have become widespread in the concert industry in recent years, with a wider range of musicians now experimenting with different ticket pricing schemes. The aim of these practices is to help musicians manage ticket capacity and maximize their concert income. However, there is limited evidence on how musicians can optimally allocate and price tickets with respect to how consumers value different ticket attributes. This study uses a stated preference discrete choice experiment and choice modeling methods to analyze consumer preferences for different attributes of concert tickets. The results of the modeling exercise highlight patterns in consumer preferences across different seating areas within a hypothetical venue, as well as average preferences for other common attributes of concert tickets. Finally, this study provides evidence of the significant welfare consumers derive from the availability of new ticketing innovations in the form of VIP packages.

People are willing to pay for climate- and biodiversity-friendly policies in Finland: opportunities of wind power, forest management, and peatland restoration

Land-use practices play a crucial role in addressing the most pressing threats to the well-being of present and future generations, namely, climate change and biodiversity loss. Our study employed a choice experiment (CE) method to delve into the preferences of Finnish citizens concerning policy measures aimed at mitigating climate change, as well as their associated outcomes. The investigation yielded three key findings. First, on average, respondents expressed a willingness to pay (WTP) for both the implementation of proposed policy measures and the subsequent outcomes. Second, there was notable heterogeneity in WTP among respondents, influenced by whether they resided in the capital region or elsewhere in the country. Third, to assess citizens’ WTP for various policy combinations, we formulated alternative policy programs. These programs underscored the significance of forestry-related measures that not only address climate change but also yield positive biodiversity outcomes in shaping effective climate policies.

Farmers' cooperation preference for solar composting chamber —— From farmers’ multi-dimensional heterogeneity perspective

Solar composting chamber is an important way for disposing rural domestic waste locally, which requires the participation of farmers. However, few studies have explored farmers' cooperation preference for solar composting chamber, even without considering farmers' heterogeneity. Therefore, this paper divides the farmers into three types: economic, social, and cognitive dominant. The Choice Experiment method is used to investigate all types of farmers' cooperation preference and willingness to accept subsides for the solar composting chamber, using the survey data of China's Shaanxi province. The findings show that social-dominant farmers favor supply models that incorporate government subsidies, more participating farmers, and technical support, while economic-dominant farmers prefer models that include closer construction distances in addition to those. In contrast, cognitive-dominant farmers prefer models with more withdrawal flexibility in addition to the aforementioned factors. Furthermore, economic-dominant farmers have the lowest value of willingness to accept subsidies, i.e., 10,923 dollars, while cognitive-dominant farmers have the highest, i.e., 22,197 dollars. According to the results, policy implications are suggested, including incentivizing farmers' participation by enhancing government subsidies and technical support, and developing diverse cooperation models.

Evaluation and valuation of tajan river basin ecosystem services

Rivers as a blue ecosystem have a lot of ecosystem services that awareness of the value of their services will protect them as much as possible and communities will benefit from their environmental services. In this study, Tajan river basin ecosystem services in the north of Iran was valuated. To valuate, the choice experiment method was used to estimate willingness to pay. Tajan river basin ecosystem services attributes including regulating, supporting, provisioning and cultural services and a price attribute at three levels were determined. Data from 239 resident households of Mazandaran province were used in 2017. The empirical analysis did by the conditional logit model and mixed logit model. Also, multi criteria decision making including techniques Entropy, TOPSIS and SAW used for evaluating the role and importance of the Tajan river basin ecosystem services. The findings indicated that residents were willing to pay for the conservation of Tajan river basin ecosystem services, 13.77 USD per year. It was for regulating, supporting, provisioning and cultural services of Tajan river basin, 2.62, 6.30, 2.50 and 2.35 USD per year to move away from the status quo to the improvement status respectively. Also, findings of weighting and prioritization of Tajan river basin ecosystem services with TOPSIS and SAW methods showed that supporting and provisioning services had the highest weight for the evaluation Tajan river basin ecosystem services. In other words, the residents prefer the services as the most important Tajan river basin ecosystem services. Results showed that willingness to pay can be introduced as a useful tool to investigated people's preference for conservation of river basin ecosystem services under various activities. Therefore, by determining the value of river ecosystem services, community will understand that river services are of great importance, and the application of its value in calculations related to comprehensive management of basin water resources will provide a suitable economic solution to increase user utility the river.

Consumer preference for sustainability labels in the context of China

Sustainability Label (SL) have emerged as an important product attribute in recent decades, and have evolved into various types as products with social, environmental, and economic benefits have become more prevalent in the marketplace. With the information of SL in products, consumers are encouraged to embrace environmental sustainability principles and to make environmentally sustainable choices and actions. SL helps alignment between consumers and the industry by enhancing consumers’ nderstanding of company’s act, and serve as an effective marketing message. However, there is limited research on consumer preferences for different types of sustainable labels or benefits. This study addresses this knowledge gap by applying choice experiment method to assess consumers’ choice behavior for products associated with various SL. Choice experiment designs are separately developed for two most relevant sustainable products (i.e. soymilk and EV) in China. A stated preference method (SPM) consumer survey was conducted in 2022 across six major cities in China, namely Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu, and Xi’an, and a total of 840 valid responses were collected for assessing multinomial logit (MNL) model. Findings show that Chinese consumers prefer SL with environmental benefits, foreign COO/Brand in consuming soymilk, and prefer SL with employee friendliness, domestic COO/Brand for Electric Vehicle (EV). These findings provide insights for marketers and researchers Chinese consumers’ preference for specific SL and brand for two selected product categories.

Residents’ Willingness to Pay for Forest Ecosystem Services Based on Forest Ownership Classification in South Korea

South Korea is one of the countries with a significant proportion of its national territory covered by forests. However, it remains unclear what management strategies for providing forest ecosystem services are preferred by the residents. This study explores South Korean residents’ preferences for managing local forest ecosystem services, with a focus on how these preferences vary by forest ownership. Using the choice experiment method, this research identified residents’ willingness to pay for seven key local forest ecosystem services, along with a tax measure. The findings indicate a strong preference for biodiversity as the primary ecosystem service in both national/public and private forests, with residents willing to pay an average of KRW 28,370 (USD 21.80) per household per year and KRW 31,670 (USD 24.34) per household per year, respectively, for its enhancement. Preferences varied depending on forest ownership, with noticeable differences in perceptions of services like water supply, non-timber forest product supply, carbon storage, and recreation. Based on forest ownership, these variations in perceptions highlight the importance of managing ecosystem services in line with national/public forests and private forests, which significantly influences residents’ preferences. The study emphasizes the necessity of formulating ecosystem service management policies that account for the region’s unique natural resource characteristics, aiming to maximize ecological benefits for the local population.

Would manufacturing go for renewable energy? Manufacturers' preference towards sustainability

Malaysia needs to fully utilize its renewable energy resources to meet its goal of installed capacity of 31% of renewable energy in 2025 and 40% in 2035. In order to empower renewable energy sources, the government has established a fund known as the renewable energy fund (RE FUND). In Malaysia, most manufacturing sectors contribute to the RE FUND through their monthly electricity bills due to their electricity consumption exceeding 300kwh per month. As Malaysia's highest electricity consumer, the manufacturing sector needs government investment incentives to switch to renewable energy sources to generate electricity. Therefore, this study was conducted to identify attribute preferences of the manufacturing sector due to investing in renewable energy sources. The Choice Experiment method was employed where the Mixed Logit model was chosen to identify the willingness to pay for the manufacturing sectors based on their preferences among the four attributes: types of renewable energy, project location, annual reduction in GHG emissions, and RE FUND. The study results found that the manufacturing sector places the highest value on the project location, where they prefer to improve the project location from current condition to far location. This study can also help to achieve the Goal 7 in the Sustainable Development Goal (SDG), where investment in renewable energy sources can guarantee that all individuals obtain affordable, reliable, sustainable, and modern electricity in 2030.

Visitor Perception of the Degradation of Bar Reef Kalpitiya Sri Lanka

Bar Reef is a complex marine ecosystem with over 120 coral species living in the reef and over 300 fish species reported from the surrounding sea. It was declared a marine sanctuary in 1992. Despite efforts for conservation, the Bar Reef ecosystem is at risk of degradation due to overexploitation of extractive uses, namely, edible fish, other seafood species, and aquarium fish. In addition, destructive fishing practices are also responsible for damaging the reef ecosystem. The designation of Kalpitiya as a significant tourism promotion area has created additional pressure on the system. Further, the worldwide incidence of coral bleaching in 1998 has severely affected a major part of the Bar Reef. However, the amount of degradation persistent in the bar reef has not been valued so far. This research has attempted to value the extent of degradation prevailing in the Bar Reef from the perception of the visitors. It has used Choice Experiment Method to assess the visitors’ perception of the degradation. Randomly selected 250 visitors were interviewed and the conditional logit model has been used to investigate the visitor preferences towards the habitat quality and analyze the significance of their preferences. According to the results obtained reduction of plastic and polythene by 50%, reducing the crowding in the beach area by 15%, and paying Rs. 1000 has become significant. Hence it is expected by this research to provide a signal to the relevant stakeholders on the extent of degradation prevailing and the importance of protecting this habitat.

Community perspectives of flagship species: can conservation motivators mitigate human-wildlife conflict?

Public perception of endangered species is crucial for successful management of community-based conservation and sustainability of national parks. By the method of choice experiment, our study evaluated conservation preferences and willingness to donate money for flagship and non-flagship species using a choice experiment with 409 residents living near the Lanstang river source of Sanjiangyuan National Park, China. We found that flagship species such as the Snow leopard (Pristine plateau) and White-lipped deer (Przewalskium albirostris) generated more conservation funds than non-flagship species. However, not all flagship species were accepted. Respondents disliked Tibetan brown bears (Ursus arctos pruinosus) due to direct human-wildlife conflicts such as bodily injury and property damage. Heterogeneity of preference was influenced by household income, religious beliefs, ethnicity, culture, and conservation awareness. Results can be used to establish a local community-participative framework by combining conservation motivations that alleviate human-wildlife conflict.

Valuation of the Bar Reef Marine Sanctuary from the Perception of the Visitors


 
 
 Bar Reef is a diverse ecosystem with near shore coral reefs, sea grass beds and associated ecosystems with over 120 coral species and over 300 fish species reported from the surrounding sea. It has been declared as a marine sanctuary by the Department of Wildlife Conservation in 1992. Despite of the efforts it is subjected to over exploitation by extractive users, destructive fishing practices and visitor pressure on the ecosystem. The study sought to value the ecosystem degradation prevailing in the bar reef from the perception of the visitors using choice experiment method. Different attributes for the choice experiment were identified using two focus group discussions and 10 key informant interviews held prior to the mail survey. Identified attributes were level of plastic accumulated, use of illegal fishing nets, level of crowding and monetary contribution. An orthogonal main effect design was generated and 9 choice cards were prepared, each with 4 different attributes. Randomly selected 250 visitors were interviewed onsite during January to June 2021 and conditional logit model was used to analyze the significance of their preferences. Paying LKR 1,000, reducing crowding the beach area by 15% and reduction of plastic and polythene by 50% were the significant factors according to the results obtained at α=0.01. People are willing to pay LKR 1,001.18 if plastic pollution can be reduced by 50%. People are willing to pay LKR 998.92 if the crowding of the beach can be reduced by 15%. The results of this research emphasize the importance of protecting this habitat to the relevant stakeholders. Further, this research will enable to introduce new policies and practices so that sustainability of the ecosystem can be ensured.
 Keywords: Ecosystem sustainability, Choice experiment, Conditional logit, Marine plastic pollution, Visitor access management
 
 

Quantitative Valuation Methods in Green Energy

Green Energy is a special case because it can be considered both as a “private good” and a “public good.” In other words, green energy carries a positive externality and the market value reflects only a small portion of the total benefits. That is why, the methods of assessing the value of a market economy does not give a complete picture. In order to calculate the total monetary value in green energy, the indirect valuation methods cannot give the true value, since they study only the use value, and environmental goods/services carries usually the non-use value too. Therefore, direct market valuation methods such as Contingent Valuation (CVM) and Choice Experiment (CE) methods can be used to calculate the total value in Green Energy. Keywords: Green Energy; Willingness to Accept (WTA); Willingness to Pay (WTP); Contingent Valuation Method (CVM); Choice Experiment (CE).

Willingness to pay for solar off-grid lighting in rural India

This paper attempts to quantitatively determine the factors that affect the adoption of solar off-grid lighting products from the experience of using solar study lamps. The discrete choice experiment method is applied where the rural household in the primary survey is asked to reveal their willingness to pay for solar off-grid lighting products like Solar Pocket lamp, Solar Hurricane lamp, and Solar Home Lighting System (SHLS) in the pre-intervention and post-intervention stages. The baseline (pre-intervention) and impact (post-intervention) data helps to check whether exposure to the use of solar off-grid product technology will improve familiarity and boosts confidence, which in turn results in a higher willingness to pay for the products. The data analysis using Tobit regression reveals that the willingness to pay significantly rises in the post-intervention phase in the case of all three products. This study examines the factors influencing ‘base of pyramid’ households' willingness to pay for solar off-grid lighting systems in India. Using data collected from 663 households, it is identified that the money spent on kerosene lighting, electricity reliability, household type, total assets, and knowledge of the health effects of kerosene, the specification of the solar panel, the number of solar lamps, and the functioning status of the study lamp are major determinants of the willingness to pay for solar off-grid technologies.

Policy preference and preference heterogeneity of farmers' participation in organic farming: Empirical analysis based on choice experiment method

Policy preference and preference heterogeneity of farmers' participation in organic farming: Empirical analysis based on choice experiment method