Valuing the state of water in New Zealand using the experienced preference method. Issue 4 (2nd October 2017)

• Record Type: Journal Article
• Authors: Ambrey, Christopher L.; Fleming, Christopher M.; Manning, Matthew
• Is Part Of: Australasian journal of environmental management. Volume 24:Issue 4(2017)
• Page Start: 423
• Page End: 440
• Publication Date: 2017-10-02
• Subjects: Environmental policy -- New Zealand -- Periodicals; Environmental protection -- Australia -- Periodicals; Conservation of natural resources -- New Zealand -- Periodicals; Environmental protection -- New Zealand -- Periodicals; Conservation of natural resources -- Australia -- Periodicals; Environmental policy -- Australia -- Periodicals; Environmental protection -- Periodicals; 363.70099
• DOI: 10.1080/14486563.2017.1378134
• Languages: English
• ISSNs: 1448-6563

Abstract

ABSTRACT: This article employs the experienced preference method to value the state of water in New Zealand. In doing so, this article represents a clear contribution to both the literature on non-market valuation and public policy regarding the preservation of water quality. The results show that a one-unit increase in satisfaction with the state of water bodies an individual has visited, is associated with a 1.6 per cent greater likelihood to report being very satisfied with their life. This positive link is robust to the estimation technique employed and a range of control variables. We find the value depends greatly on the functional form imposed on income. Specifically, the use of a cube root functional form yields an implicit willingness-to-pay (WTP) estimate of NZD 11, 003, approximately half the size of the base model estimate. Uniquely, we couch this point estimate in the context of a broader distribution of implicit WTP estimates. It is hoped that these results will inform future applications and development of the experienced preference method and support public policy.