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Choice Modelling: Assessing the Environmental Values of Water Supply Options
Author(s) -
Blamey Russell,
Gordon Jenny,
Chapman Ross
Publication year - 1999
Publication title -
australian journal of agricultural and resource economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 1364-985X
DOI - 10.1111/1467-8489.00083
Subject(s) - choice modelling , valuation (finance) , multinomial logistic regression , contingent valuation , context (archaeology) , willingness to pay , value (mathematics) , economics , econometrics , set (abstract data type) , multinomial distribution , environmental economics , microeconomics , computer science , business , marketing , geography , finance , machine learning , programming language , archaeology
Three criticisms of the contingent valuation method (CVM) are considered in this article. One technique that would appear to answer such criticisms is choice modelling (CM). CM permits value estimates for different goods sharing a common set of attributes to be pieced together using the results of a single multinomial (conditional) logit model. The CM approach to environmental value assessment is illustrated in the context of a consumer‐based assessment of future water supply options in the Australian Capital Territory. CM is found to provide a flexible and cost‐effective method for estimating use and passive use values, particularly when several alternative proposals need to be considered.