Estimation of Non-market Forest Benefits Using Choice Modelling

This module is concerned with some fundamental features and conditions of choice modelling applications to non-market valuation. Choice modelling is an advance on the contingent valuation method (CVM), and is creating strong interest among researchers, and has much potential for non-market valuation in multiple use forestry. To undertake a choice modelling application for estimating non-market values, potential practitioners need to understand the theoretical issues and practicalities involved in applying the technique. These include the statistical foundation of choice modelling, strict rules for the experimental design and ways of utilising the estimates. This module first outlines the characteristic features of choice modelling in terms of the method of evaluating resource use alternatives, compared with contingent ranking, contingent rating and CVM. Some basic assumptions and considerations needed in designing choice sets are then examined. Roles and rules of focus groups are next introduced. Some choice modelling applications made in forestry research are then briefly reviewed. Finally, ways of extrapolating welfare measures from a choice modelling application are reviewed. More complex statistical issues are explained in three appendices.