Lexicographic Preferences and the Contingent Valuation of Coral Reef Biodiversity in Curacao and Jamaica

Lexicographic Preferences and the Contingent Valuation of Coral Reef Biodiversity in Curacao and Jamaica

Primary Country: Curacao
Ecosystem: coral reef
Sample Value Estimates:
WTP to improve coral reef biodiversity by 25% given a set of management strategies to be adopted in Curacao, per annum for five years for
  1. $1.85 / person / year ($0.19 - 4.
  2. : mean for locals (ran
  3. and for
  4. $2.46 / person / year ($2.46-5.
  5. : tourists WTP to improve coral reef biodiversity by 25% given a set of management strategies to be adopted by a marine park in Montego Bay, Jamaica, per annum for five years for
  6. $3.75 / person / year (1.66 - 4.
  7. : mean for locals (ran
  8. and for
  9. $2.73 / person / year ($1.17 -2.
  10. : tourists
Methodology: contingent valuation
Region: Americas
Data source: NOAA's Coral Reef Valuation Database

Publication information

Spash, C.L. van der Werff ten Bosch, J.D.Westmacott, S.Ruitenbeek, J. “Lexicographic Preferences and the Contingent Valuation of Coral Reef Biodiversity in Curacao and Jamaica” Integrated Coastal Zone Management of Coral Reefs: Decision Support Modeling, eds. Gustavson, K., Huber, R.M. and Ruitenbeek, J. The International Bank for Reconstruction and Development, The World Bank, Washington DC. pp. 97-117., 2000

Addtional Notes

The upper and lower bound is based on a dummy variables capturing ethical positions.Book (Chapter)

Spash, Clive, L.//van der Werff ten Bosch, Jasper, D.//Westmacott, Susie//Ruitenbeek, Jack

0/0/2000

Lexicographic Preferences and the Contingent Valuation of Coral Reef Biodiversity in Curacao and Jamaica

Gustavson, K., Huber, R.M. and Ruitenbeek, J., Editors.

Integrated Coastal Zone Management of Coral Reefs: Decision Support ModelingThe International Bank for Reconstruction and Development, The World Bank

Washington, DC

pp. 97-117

Coral Reef/Contingent Valuation/Lexicographic Preferences/Biodiversity/

This study uses a modified contingent valuation analysis of coral reef quality for amenity, biodiversity, and other values in Montego Bay, Jamaica and reef areas along the south coast of Curacao. It directly addresses the possibility of Lexicographic preferences by testing the rejection of trade-offs in instances of a zero bid for reasons of non-zero values. It was shown that about one-fifth of respondents reject trade-offs when asked to pay to prevent environmental deterioration. Protest bids were also analyzed and it was found that 32% and 27% for Curacao and Jamaica respectively fell into this category. Additionally, because a certain proportion of the respondents were low-income or unemployed, time was offered as a WTP vehicle as well as money. In terms of survey design, this study shows a methodology for classifying lexicographic type preferences and the development of checks for consistency in terms of WTP. The WTP scenario is to improve coral reef biodiversity by 25% given a set of management strategies to be adotped by a marine park. The park will have a trust fund set up explicitly for the purpose. Several payment methods were considered, but a per-annum payment for five years was felt to be reasonably realistic. It was felt that beyond five years, people are unlikely to regard actual payment as likely. To summarize the results, for Jamaica, locals had a lower bound estimate of US$1.66 and an upper bound estimate of US$4.26 with a mean of US$3.75. Tourists had a lower bound estimate of US$1.17 and an upper bound estimate of US$2.98 and a mean of US$2.73. For Curacao, locals had a lower bound estimate of US$0.19 and an upper bound estimate of US$4.05 with a mean of US$1.85. Tourists had a lower bound estimate of US$0.26 and an upper bound estimate of US$5.82 and a mean of US$2.46.These are per-person annual payment for five years. The upper and lower bound is based on a dummy variables capturing ethical positions.

Modified CVM study of the value of coral reef quality, testing for Lexicographic preferences and protest bids. Two geographic locations. Developing countries. Analysis of the determinants of WTP employed a tobit analysis. Average WTP was estimated. Aggregation was not addressed.

Montego Bay, Jamaica and reef areas along the south coast of Curacao.

Coral Reef

n/a

Survey of residents and tourists.

Not given(Curacao) Nonuse values: Locals: Lower bound US$0.19, Upper bound US$4.05 Mean US$1.85 Tourists: Lower bound US$0.26, Upper bound US$5.82, Mean US$2.46 Per-person annual payment for five years.

On-site survey

Estimation of a bid curve by using a tobit analysis, however, the main point of this study was the ability to test for lexicographic preferences with the survey design.

971

Residents and Tourists

Stratified random sample of residents and tourists

Peter C. Wiley

Information provided when available, for more information please visit the original database or PDF.