Directional Heterogeneity in WTP For Multiple Attributes of Beach Recreation: An Application of Future Travel Cost Increase Method to A Labelled Discrete Choice Experiment
Year: 2024
Type: article
Study design: Observational Study
Abstract: This study examines directional heterogeneity in distance-decay effects on willingness-to-pay (WTP) and their significance in welfare estimates, benefits transfer, and cost-benefit analysis. We used the future travel cost (FTC) increase method in a labelled discrete choice experiment (DCE) and applied random parameter logit (RPL) models to estimate distance-decay effects in WTP for multiple attributes of beach recreation, such as coastal water quality and beach cleanliness. The results show that accounting for directional heterogeneity for multiple attributes, rather than a single attribute, yields notably different willingness-to-pay (WTP) estimates. For coastal water quality, directional effects are seen across two directions, while beach cleanliness shows directional effects in all directions. These findings highlight significant directional heterogeneity in WTP held by individual respondents for multiple attributes across different directions exist, which would help policymakers lacking financial resources to generate revenues for sustainable coastal resource management.
Institution: Universiti Utara Malaysia
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4406294905