| By: |
Bruno Lanz (Centre for Energy Policy and Economics (CEPE), Department of Management, Technology and Economics, ETH Zurich);
Allan Provins (Economics for the Environment Consultancy (eftec) ltd., London, U.K.) |
| Abstract: |
We report results from a series of discrete choice experiments designed to
elicit preferences for environmental improvements brought about by local
regeneration initiatives. Amenities we consider are areas of open space,
restoration of derelict properties, outdoor recreation facilities, street
cleanliness, public areas, and the provision of paths dedicated to cycling and
walking. We include a measure for the spatial coverage of the policy as an
attribute, making the trade-off between space and other attributes explicit.
The experimental design is selected to efficiently estimate the first order
interaction effects between the spatial attribute and the nimprovements based
on a constrained version of the D-efficiency criteria. We use a mixed logit
model to analyse observed choices and derive a second order Taylor
approximation for the mean willingness to pay for marginal improvement in the
presence of preference heterogeneity and price insensitive respondents. We
find evidence that the spatial scope of improvements affects both the
intensity and heterogeneity of preferences. Our results suggest significant
economic values in dimensions that are difficult to capture in observed market
transaction data, thereby contributing to ex-ante assessment of local
regeneration policies. |
| Keywords: |
Non-market valuation, Discrete choice experiments, Spatial analysis, Urban planning, Regeneration policy |
| JEL: |
Q Q28 Q51 R R53 R58 C C21 C35 C81 |
| Date: |
2011–08 |
| URL: |
http://d.repec.org/n?u=RePEc:cee:wpcepe:11-79&r=dcm |