A choice modelling approach for assessment of use and quasi-option values in urban planning for areas of environmental interest
This study adopts a discrete choice modelling methodology to evaluate individuals' preferences over planning alternatives for an urban site of environmental interest. Since such projects involve some uncertainty and irreversibility, a special attention is devoted to the estimation of the quasi-option values which are associated to project development. Two distinct measures for the quasi-option value are estimated, and both coefficients indicate that the public places a significant value on reduction of the possibility of adverse irreversible effects: a more prudent development strategy is valued about four times more than a procedure that provides a lesser hedge against undesired outcomes. Furthermore, the study involved elicitation of intertemporal preferences over projects with different time spans, and estimation of the implicit discount rates: the values obtained seem high if compared to standard discount rates applied to public projects, but not far from current interest rates on consumption.
Year of publication: |
2008
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Authors: | Strazzera, Elisabetta ; Cherchi, Elisabetta ; Ferrini, Silvia |
Publisher: |
Milano : Fondazione Eni Enrico Mattei (FEEM) |
Subject: | Urban Planning | Environmental Values | Choice Modelling | Use Values | Quasi-option Values | Discounting |
Saved in:
Series: | Nota di Lavoro ; 63.2008 |
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Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Working Paper |
Language: | English |
Other identifiers: | 643905219 [GVK] hdl:10419/53247 [Handle] |
Classification: | C35 - Discrete Regression and Qualitative Choice Models ; Q51 - Valuation of Environmental Effects ; R41 - Transportation: Demand; Supply; Congestion; Safety and Accidents |
Source: |
Persistent link: https://ebvufind01.dmz1.zbw.eu/10010279475