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Appears in Collections:Economics Working Papers
Peer Review Status: Unrefereed
Title: Accounting for Negative, Zero and Positive Willingness to Pay for Landscape Change in a National Park
Authors: Hanley, Nicholas
Colombo, Sergio
Kristrom, Bengt
Watson, Fiona
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Citation: Hanley N, Colombo S, Kristrom B & Watson F (2008) Accounting for Negative, Zero and Positive Willingness to Pay for Landscape Change in a National Park. Stirling Economics Discussion Paper, 2008-10.
Keywords: contingent valuation
national parks
negative WTP
spike models
JEL Code(s): D6
Issue Date: Jun-2008
Series/Report no.: Stirling Economics Discussion Paper, 2008-10
Abstract: In contingent valuation, despite the fact that many externalities manifest themselves as costs to some and benefits to others, most studies restrict willingness to pay to being non-negative. In this paper, we investigate the impact of allowing for negative, zero and positive preferences for prospective changes in woodland cover in two UK national parks, the Lake District and the Trossachs. An extended spike model is used to accomplish this. The policy implications of not allowing for negative values in terms of aggregate benefits are also investigated, by comparing the extended spike model with a simple spike making use of only zero and positive bids, and a model which considers positive bids only. We find that ignoring negative values over-states the aggregate benefits of a woodland planting project by up to 44%.
Type: Working or Discussion Paper
Affiliation: Economics
IFAPA Centro Camino de Purchil
Swedish University of Agricultural Sciences
University of Stirling

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