Measuring Environmental Externality Spillovers through Choice Modelling

Abstract

This paper illustrates the design and implementation of a choice modelling experiment to determine the spatial distribution of environmental benefits of Kings Park (Western Australia). The objective is to understand which environmental change produces benefit spillovers, and whether this information can help to determine the appropriate form of funding for conservation policies. Results indicate that distance effects vary across the choice attributes, and can take very complex forms, according to the use-value/non-use-value ratio implicit in each attribute. For policy purposes, the results suggest that funding for the park should be a mix of local, state, and federal resources.