Sample and sampling strategy

The choice of survey population obviously depends on the objective of the survey.

Given the survey population, a sampling strategy has to be determined. Possible strategies include a simple random sample, a stratified random sample or a choice-based sample. A simple random sample is generally a reasonable choice. One reason for choosing a more specific sampling method may be the existence of a relatively small but important sub-group which is of particular interest to the study. Another reason may be to increase the precision of the estimates for a particular sub-group. In practice the selection of sample strategy and sample size is also largely dependent on the budget available for the survey (Alpizar et al. 2001).

The advantages of CM are that values for each attribute as well as marginal rates of substitution between non-monetary attributes can be obtained. Moreover, rigorous tests of internal validity can be performed. The success of CM depends on the design of the experiment which, as repeatedly stressed, is a dynamic process involving definition of attributes, attribute levels and customisation, context of the experiment, experimental design and questionnaire development. Important tasks for future research include improving the knowledge about how respondents solve a choice experiment exercise and if preferences are consistent over the course of the experiments. Furthermore, the choice sets created by the chosen experimental design strategy have an important impact on the results.

4.7.5 Summary

Choice Modelling is a stated preferences technique for the estimation of non-market values. It has some distinct advantages over other technique, such as the Contingent Valuation Method, that have been more widely applied. Its ability to provide a disaggregated view of values is a key feature. With respondents’ preferences broken

down into components associated with the attributes that go to make up a good, it is possible to use Choice Modelling results to investigate the relative importance of attributes and estimate the values associated with various combinations of attribute levels (Bennett and Blamey, 2001). This method gives the value of a certain good by separately evaluating the preferences of individuals for the relevant attributes that characterize that good, and in doing so it also provides a large amount of information that can be used in determining the preferred design of the good (Alpizar et al., 2001).

I believe that applications of this technique will become more frequent in other areas of environmental economics as well. For example only recently has the aim of damage assessment in litigation shifted from monetary compensation to resource compensation. Therefore identification and evaluation of the different attributes of a damaged good is required in order to design the preferred restoration project (Adamowicz et al., 1998; Banerjee et al., 2007).

Choice experiments are especially well-suited for this purpose, and one could expect this method to be a central part of future litigation processes involving non-market goods. Considering that the aim of this project is to analyse the relationship among all the variables that forms the respondents’ utility function, Choice Modelling technique represents the most appropriate methodology to estimate the non-market value of the biodiversity conservation of Ningaloo Reef Marine Park.

4.8 Conclusion

What is not being argued in environmental economics literature, is that all environmental assets have significant unmeasured value and therefore all assets should be protected. Rather it is the ongoing ‘healthy’ system that possesses primary value and this requires biodiversity conservation at the landscape scale.

There is still, however, the thorny problem of actually deciding, on a rational basis, the ‘scale’ from which to manage environmental public goods. The ‘scale’ choice problem is in fact a public policy decision and as such is underdetermined by the mere provision of scientific information. Available scientific information contains inaccuracies and uncertainties such that it is not possible to specify minimum viable populations and minimum habitat size for the survival of species (Hohl and Tisdell, 1993).

Biodiversity and other environmental conservation decisions, for a considerable time to come, will have to be based on ethical considerations. It has been concluded that

‘society may choose to adopt the safe minimum standard not because it result from a rigorous model of social choice, but simply because individuals in the society feel that the safe minimum standard is the “right thing to do” (Ready and Bishop, 1991).

Also, let us not forget the significant instrumental value that biodiversity and other environmental resources possess. A suitably comprehensive and long-term view of instrumental value (one that protects ecosystems’ services by protecting the health and integrity of systems over the long run) is probably sufficient to realize the case for more environmental conservation and will carry with it aesthetic and intrinsic moral values as well (Turner, 1988; Costanza et al., 1993; Sloan, 2002; Lundquist and Granek, 2005).

Before we explore the potential choice modelling offers to estimate in monetary terms the non-use value of Ningaloo Marine Park, the Chapter to follow analyses other previous studies on economic valuation of biodiversity.

Chapter V

Previous Studies on Economic Valuations of Biodiversity

5.1 Introduction

The objective of this literature review is to illustrate the techniques that have been used recently and the results that have been achieved in empirical studies relevant to marine and coral reef biodiversity valuation. The aim of this section is to explore the environmental economics literature with a focus on marine biodiversity issues, to better understand and introduce this case study involving on the biodiversity conservation evaluation of Ningaloo Reef Marine Park, and analyse all the difficulties and problems related to the marine ecosystems valuation. Very little has, in fact, been done that relates only to marine biodiversity, while an extensive amount of research has been done that covers related areas, such as coastal resource valuation, or terrestrial biodiversity valuation. The purpose of this section is not to provide an exhaustive review of all of the valuation literature that may be relevant;

such a review would encompass literally thousands of articles. I have taken the approach to review a number of key studies that have attempted to measure the economic value of different elements of biodiversity. In particular, I distinguish studies that have valued biological resources by value categories including existence and option value; harvested product valuations; recreation and tourism valuation;

education and research values.