Lina Lourenço-Gomes

USING CHOICE EXPERIMENTS TO VALUE A WORLD CULTURAL HERITAGE SITE: REFLECTIONS ON THE EXPERIMENTAL DESIGN

In the context of public amenities, whose benefits of preservation are not totally reflected by the market, the valuation of cultural heritage has given primacy to the contingent valuation method, with very few attempts being made to valuation via the discrete choice experiments technique (DCE). In the present paper, from among the various phases of the DCE conception, particular emphasis is given to the way in which the attributes levels are combined into alternatives and how they are allocated into choice sets (experimental design step). In order to configure hypothetical scenarios relating to the conservation of a World Heritage cultural landscape, this paper applies both the experimental design strategies identified in the literature review as commonly applied in DCE to value cultural items, as well as D-optimal processes, which proved to be advantageous both in terms of statistical efficiency and in the information required (number of choice sets).

Using stated preference methods to assess environmental impacts of forest biomass power plants in Portugal

As a renewable energy source, the use of forest biomass for electricity generation is advantageous in comparison with fossil fuels; however, the activity of forest biomass power plants causes adverse impacts, affecting particularly neighbouring communities. The main objective of this study is to estimate the effects of the activity of forest biomass power plants on the welfare of two groups of stakeholders, namely local residents and the general population. To this end, we apply two stated preference methods: contingent valuation and discrete choice experiments, respectively. The former method was applied to estimate the minimum compensation residents of neighbouring communities of two forest biomass power plants in Portugal would be willing to accept. The latter method was applied among the general population to estimate their willingness to pay to avoid specific environmental impacts. The results show that the presence of the selected facilities affects individuals’ well-being. On the other hand, in the discrete choice experiments conducted among the general population all impacts considered were valued, in particular odour and fauna and flora impacts. The results of this study stress the importance of performing an equity analysis of the welfare effects on different groups of stakeholders from the installation of forest biomass power plants, as their effects on welfare are location and impact specific. Policy makers should take into account the views of all stakeholders either directly or indirectly involved when deciding crucial issues regarding the sitting of new forest biomass power plants, in order to achieve an efficient and equitable outcome.

Discrete-choice experiments valuing local environmental impacts of renewables: two approaches to a case study in Portugal

Despite the often mentioned environmental benefits associated with transition from fossil fuels to renewable energy sources, their use for electricity production has non-negligible negative environmental impacts. The most commonly mentioned in surveys concern different types of landscape impacts, impacts on the fauna and flora, and noise. These impacts differ by size and location of plants, and by source of energy, rendering the policy decision complex. In addition, there are other welfare issues to take into consideration, as positive and negative environmental impacts are not evenly distributed among population groups. This paper proposes to compare the welfare impacts of renewable energy sources controlling for the type of renewable as well as the specific environmental impact by source. To this end, two discrete-choice experiments are designed and applied to a national sample of the Portuguese population. In one case, only individual negative impacts of renewables are used, and in another case, the negative impacts interact with a specific source. Results show the robustness of discrete-choice experiments as a method to estimate the welfare change induced by the impacts of renewable energy sources. Overall, respondents are willing to pay to reduce the environmental impacts, thus making compensation for local impacts feasible. Moreover, the estimations reveal that respondents are significantly sensitive to the detrimental environmental effects of specific renewable energy sources, being willing to pay more to use these sources of energy relative to others.

The role of consumers in agrobiodiversity conservation: the case of traditional varieties of apples in Portugal

ABSTRACT The agronomical, cultural, and historical importance of local varieties and the need of structured preservation of genetic resources have been widely recognized at both political and scientific levels in the past decades. To be engaged in genetic resource preservation, farmers must find it rewarding. Besides public policies, the generation of benefits depends crucially on the revenues farmers can collect through product sales, which, in turn, depends on consumers’ preferences. If consumers are willing to pay a price premium that rewards farmers for the lower productivity and greater variability usually associated with traditional varieties, market can make a significant contribution to agrobiodiversity preservation. However, knowledge about consumer’s willingness to pay (WTP) for traditional varieties is scarce and the main research on this topic focuses on particular varieties making it difficult to generalize the results. This study, rather than determining consumers’ WTP for a specific variety, seeks to estimate the WTP for the attribute “traditional variety” itself, using a hedonic price model. In-store Becker-DeGroot-Marschak auctions were applied for data collection. Results show that consumers, depending on their socio-economic characteristics, are willing to pay for the feature “traditional variety”.

International demand for the Douro (Portugal) river cruises: A gravity model approach

Cruises on the Portuguese Douro river have been growing at a much faster pace than overall outbound tourism to Portugal, suggesting that the river is part of a worldwide trend that has been organized by global cruise operators. A gravity model is used to analyse the main factors affecting the international demand for Douro river cruising over the period from 2007 to 2014. The numbers of international passengers are positively determined by income per capita of origin country and by the population size of the leading countries of outbound tourism to Portugal.