Heterogeneity in the WTP for recreational access: distributional aspects

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In this study we have addressed appropriate modelling of heterogeneity in willingness to pay (WTP) for environmental goods, and have demonstrated its importance using a case of forest access in Denmark. We compared WTP distributions for four models: (1) a multinomial logit model, (2) a mixed logit model assuming a univariate Normal distribution, (3) or assuming a multivariate Normal distribution allowing for correlation across attributes, and (4) a mixture of two truncated Normal distributions, allowing for correlation among attributes. In the first two models mean WTP for enhanced access was negative. However, models accounting for preference heterogeneity found a positive mean WTP, but a large sub-group with negative WTP. Accounting for preference heterogeneity can alter overall conclusions, which highlights the importance of this for policy recommendations.
Original languageEnglish
JournalJournal of Environmental Planning and Management
Volume57
Issue number8
Pages (from-to)1200-1219
Number of pages20
ISSN0964-0568
DOIs
Publication statusPublished - 2014

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