Bujosa Bestard A.,Center de Recerca EconOmica Sa Nostra |
Riera Font A.,Center de Recerca EconOmica Sa Nostra
Journal of Forest Economics | Year: 2010
Public goods and services supplied by nature require active government intervention to ensure their provision. Nevertheless, prior to the implementation of any policy, planners should compare the costs and benefits caused by their decisions, a difficult task when policies and regulations are developed at a regional or national level (i.e. fire and pest control policies included in forests national plans), and their impacts spread out across a large number of people and ecosystems. In this context, although environmental economics has provided the necessary information for decision-making guidance related to site-specific interventions, little attention has been given to the information requirements of policies affecting large geographical areas, that is, to the estimation of an aggregate value for a specific region. The purpose of this paper is to improve current applications, inferring the recreational value of forests through the implementation of a discrete-count linked model including all the forest areas in the region of Mallorca (Spain). © 2009 Elsevier GmbH.
Bujosa A.,Center de Recerca Economica Sa Nostra |
Riera A.,Center de Recerca Economica Sa Nostra |
Hicks R.L.,College of William and Mary
Environmental and Resource Economics | Year: 2010
Unobserved preference heterogeneity has been widely recognized as a critical issue not only for modelling choice behaviour, but also for policy analysis. This paper examines alternative approaches for incorporating heterogeneity in recreational demand. We apply a hybrid model combining discrete and continuous heterogeneity representations of tastes to capture the defining features of both the latent class and the random parameter logit specifications. This model allows for the joint estimation of discrete segments and within segment heterogeneity providing a richer interpretation of preference heterogeneity. A database of recreational trips to forest sites in Mallorca has been used to compare the empirical performance of this hybrid approach with common specifications such as the conditional logit, the random parameter logit, and the latent class model. © 2010 Springer Science+Business Media B.V.