Valuing watershed quality improvements using conjoint analysis

This paper reports on a study of valuation of multiple stream quality impro vements in an acid-mine degraded watershed in Western Pennsylvania. A techn ique extensively used in marketing research, conjoint (CJ) analysis, is use d in conjunction with a random utility model (RUM) to establish shadow valu ations for Various combinations of stream quality improvements in two strea ms. The technique shows promise in the valuation of ecosystems, which provi de a complex variety of services. Several variations on respondent choice, binary choice (BC) and intensity of preference (IP) were used, where the la tter allowed for an expression of degree of preference between status quo a nd alternative conditions. The sample constituted a panel data set from whi ch user and non-user valuations were distinguished. In addition, sample res pondents were identified by the distances of their residences to the stream sites, permitting the analysis of effects of distance on quality improveme nt valuations. These valuations suggested that persons living within roughl y 50 miles of the evaluated stream segments place some positive value on st ream improvements. (C) 2000 Elsevier Science B.V. All rights reserved.