Valuing irrigation water using a choice experiment: An individual status quo modelling of farm specific water scarcity

Environment and Development Economics

Volumn 15, Issue 3, 2010, Pages 321-340

  Barton, David N ^a,b   Bergland, Olvar ^c  

^a NORWEGIAN INSTITUTE FOR NATURE RESEARCH   (Norway)

^b NORWEGIAN INSTITUTE FOR WATER RESEARCH   (Norway)

^c NORWEGIAN UNIVERSITY OF LIFE SCIENCES   (Norway)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 77955849326     PISSN: 1355770X     EISSN: 14697998     Source Type: Journal    
DOI: 10.1017/S1355770X10000045     Document Type: Article

References (36)

1. Banzhaf, M.R., F.R. Johnson, and K.E. Mathews (2002), 'Opt-out alternatives and anglers' stated preferences', in J. Bennett and R. Blamey (Eds.), The Choice Modelling Approach to Environmental Valuation, Cheltenham, UK: Edward Elgar, pp. 157-177.
2. Barton, D.N., K.V. Raju, and D. McNeill (2008a), 'Water valuation and pricing-when are they useful in water management?', STRIVER Policy Brief No.3, available at, [online] http://kvina.niva.no/striver/Disseminationofresults/ STRIVERTechnicalBriefs/tabid/79/Default.aspx, posted November 2008, verified February 12, 2010.
3. Barton, D.N., A. Taron, and B. Alvarez (2008b), 'Using choice experiments to value irrigation water', STRIVER Technical Brief No.4, available at, [online] http://kvina.niva.no/striver/Disseminationofresults/ STRIVERTechnicalBriefs/tabid/79/Default.aspx, posted November 2008, verified February 12, 2010.
4. Bateman, I.J., R. Brouwer, S. Ferrini, M. Schaafsma, D.N. Barton, A. Binner, B.H. Day, A. Dubgaard, C. Fezzi, B. Hasler, S. Hime, I. Liekens, S. Navrud, L. De Nocker, R. Sceponaviciuté, and D. Seméniené (2009), 'Making benefit transfers work: transferring theoretically derived, spatially explicit, value functions for the non-market benefits of water quality improvements across Europe', Paper presented at the 17th EAERE Annual Conference, 24-27 June, Amsterdam.
5. Bateman, I., R.T. Carson, B. Day, M. Hanemann, N. Hanley, T. Hett, M. Jones-Lee, G. Loomes, S. Mourato, E. Ozdemiroglu, D.W. Pearce, and J. Swandon (2002), Economic Valuation with Stated Preferences Techniques. A Manual, Cheltenham: Edward Elgar.
6. Birol, E., K. Karousakis, and P. Koundouri (2006), 'Using a choice experiment to account for preference heterogeneity in wetland attributes: the case of Cheimaditida wetland in Greece', Ecological Economics 60: 145-156.
7. Birol, E., E. Rayn Villalba, and M. Smale (2009), 'Farmer preferences for milpa diversity and genetically modified maize in Mexico: a latent class approach', Environment and Development Economics 14(4): 521-540.
8. Chamberlain, G. (1980), 'Analysis of covariance with qualitative data', Review of Economic Studies 47: 225-238.
9. Colombo, S., N. Hanley, and J. Calatrava-Requena (2005), 'Designing policy for reducing the off-farm effects of soil erosion using choice experiments', Journal of Agricultural Economics 56(1): 81-96.
10. Easter, K.W. and Y. Liu (2005), Cost Recovery and Water Pricing for Irrigation and Drainage Projects, Agriculture and Rural Development Discussion Paper 26, World Bank.
11. Efron, B. and R. Tibshirani (1993), An Introduction to the Bootstrap, New York: Chapman & Hall.
12. GoI (2008), National Water Mission under National Action Plan on Climate Change. Government of India, Ministry of Water Resources, Vol. II, Appendix-V Report of the Sub-Committee on "Efficient Use of Water for Various Purposes", December 2008.
13. Griffin, R.C. (2006), Water Resource Economics. The Analysis of Scarcity, Policies and Projects, Cambridge, MA: MIT Press.
14. Haab, T.C. and R.L. Hicks (1997), 'Accounting for choice set endogeneity in random utility models of recreation demand', Journal of Environmental Economics and Management 34(2):127-147.
15. Haan, P. and A. Uhlendorff (2006), 'Estimation of multinomial logit models with unobserved heterogeneity using maximum simulated likelihood', The Stata Journal 6(2): 229-245.
16. Hanley, N., R.E. Wright, and B. Alvarez-Farizo (2006), 'Estimating the economic value of improvements in river ecology using choice experiments: an application to the water framework directive', Journal of Environmental Management 78(2): 183-193
17. Hensher, D., J.M. Rose, and W.H. Greene (2005a), Applied Choice Analysis. A Primer, Cambridge: Cambridge University Press.
18. Hensher, D., N. Shore, and K. Train (2005b), 'Households' willingness to pay for water service attributes', Environmental and Resource Economics 32: 509-531.
19. Hole, A.R. (2007a), 'Fitting mixed logit models using maximum simulated likelihood', The Stata Journal 7(3): 388-401.
20. Hole, A.R. (2007b), 'A comparison of approaches to estimating confidence intervals for willingness to pay measures', Health Economics 16: 827-840.
21. India PES Project (2008), 'Evaluating irrigation water pricing using choice experiments\experiences from the Malaprabha Command Area, Karnataka, India. Development of Tools and Methodologies to Implement the Payment for Environmental Services Concept in Watersheds in India (PES India Project)', available at, [online] http://malaprabha.org/publications/TechBrief7.pdf
22. Johnston, R.J., S.K. Swallow, and D.M. Bauer (2002), 'Spatial factors and stated preference values for public goods: considerations for rural land use', Land Economics 78(4): 481-500.
23. Johnston, R.J., S.K. Swallow, T.J. Tyrrell, and D.M. Bauer (2003), 'Rural amenity values and length of residency', American Journal of Agricultural Economics 85(4): 1000-1015.
24. Kahneman, D. andA.Tversky (1979), 'Prospect theory:ananalysis of decision under risk', Econometrica 47: 263-291.
25. Krinsky, I. and A.L. Robb (1986), 'On approximating the statistical properties of elasticities', Review of Economics and Statistics 68: 715-719.
26. Krinsky, I. and A.L. Robb (1990), 'On approximating the statistical properties of elasticities: a correction', Review of Economics and Statistics 72: 189-190.
27. McFadden, D. (1974), 'Conditional logit analysis of qualitative choice behavior', in P. Zarembka (Ed.), Frontiers in Econometrics, New York: Academic Press, pp. 105-142.
28. Molle, F. (2009), 'Water scarcity, prices and quotas: a review of evidence on irrigation volumetric pricing', Irrigation Drainage Systems 23: 43-58.
29. Ostrom, E. (1990), Governing the Commons: The Evolution of Institutions for Collective Action, New York: Cambridge University Press.
30. Peterson, J.M., J.A. Fox, J.C. Leatherman, and C.M. Smith (2007), 'Choice experiments to assess farmers' willingness to participate in a water quality trading market', Paper presented at Agricultural and Applied Economics Association, July 29-August 1, 2007, Portland, Oregon.
31. Revelt, D. and K. Train (1998), 'Mixed logit with repeated choices: households' choices of appliance efficiency level', Review of Economics and Statistics 80: 647-657.
32. Samuelson,W.andR.Zeckhauser(1988), 'Status quo biasindecisionmaking', Journal of Risk and Uncertainty 1(1): 7-59.
33. Scarpa, R., S. Ferrini, and K. Willis (2005), 'Performance of error component models for status-quo effects in choice experiments', in R. Scarpa and A. Alberini (Eds.), Applications of Simulation Methods in Environmental and Resource Economics, Dordrecht: Springer, pp. 247-274.
34. Train, K.E. (2003), Discrete Choice Methods with Simulation, Cambridge: Cambridge University Press. Watershed Atlas of India, available at, [online] http://cgwb.gov.in/watershed/about-ws.html.
35. Willis, K.G., R. Scarpa, and M. Acutt (2005), 'Assessing water company customer preferences and willingness to pay for service improvements: a stated choice analysis', Water Resource Research 41: 1-11.
36. Young, R.A. (2005), Determining the Economic Value of Water: Concepts and Methods, Washington, D.C.: Resources for the Future Press.