Choice Modelling Approaches: A Superior Alternative for Environmental Valuatioin?

TLDR

Choice modelling methods, grounded in consumer theory and attribute‑based value, offer superior representation for environmental management but can impose high cognitive burden and lead to satisficing responses. The study aims to identify the best choice‑modelling alternative for environmental valuation, assess its ability to mitigate biases of contingent valuation, and discuss its applicability to EU policy appraisal. We evaluate several choice‑modelling approaches and illustrate their use with a rock‑climbing demand study in Scotland. The rock‑climbing demand application demonstrates the feasibility of the chosen choice‑modelling approach.

Abstract

In this paper, we examine some popular ‘choice modelling’ approaches to environmental valuation, which can be considered as alternatives to more familiar valuation techniques based on stated preferences such as the contingent valuation method. A number of choice modelling methods are consistent with consumer theory, and its focus on an attribute‐based theory of value permits a superior representation of many environmental management contexts. However, choice modelling surveys can place a severe cognitive burden upon respondents and induce satisficing rather than maximising behavioural patterns. In this framework, we seek to identify the best available choice modelling alternative and investigate its potential to ‘solve’ some of the major biases associated with standard contingent valuation. We then discuss its use in the light of policy appraisal needs within the EU. An application to the demand for rock climbing in Scotland is provided as an illustration.