Environmental damage evaluation in a willingness-to-accept scenario: A latent-class approach based on familiarity
Journal
Ecological Economics
ISSN
0921-8009
ISSN-Digital
1873-6106
Type
journal article
Date Issued
2015-05-22
Author(s)
Abstract
In this paper we report on the results of the application of a latent class model that was designed to identify and characterize unobserved preference heterogeneity in the context of a willingness-to-accept (WTA) framework involving negative environmental externalities stemming from the expansion of the Port of Valencia. We investigated the hypothesis that respondents with greater familiarity with the targeted good and any related environmental damage would demand more compensation; that is, they would have a significantly higher WTA. Based on respondents' familiarity with the Port of Valencia and their pre-existing knowledge about the negative consequences of its potential expansion three clusters based on six indicators are identified. Results show that, contrary to what might be expected, familiarity with a public good does not in all cases have a significant effect on stated WTA.
Language
English
Keywords
Latent class cluster model
Contingent valuation
Willingness to accept
Negative externalities
Familiarity
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Elsevier
Publisher place
Amsterdam
Volume
116
Number
1
Start page
280
End page
288
Pages
9
Subject(s)
Division(s)
Eprints ID
241166