DANIEL R. PETROLIA, TAE-GOUN KIM
Marine Resource Economics 24 (2), 131-146, (1 June 2009) https://doi.org/10.5950/0738-1360-24.2.131
KEYWORDS: Dichotomous choice, Krinsky-Robb, non-market valuation, random-effects probit, referendum, Turnbull
A dichotomous-choice contingent-valuation survey was conducted in the State of Mississippi (USA) to estimate willingness to pay (WTP) for three restoration options being considered for the state's barrier islands. Random-effects probit models were estimated, and parametric and non-parametric WTP estimates and confidence intervals were calculated. Turnbull lower-bound mean WTP was $22 per respondent to maintain the existing footprint over a 30-year period, $152 to restore 2,338 acres (pre- 1969 footprint), and $277 to restore 5,969 acres (pre-1900 footprint). Econometric results indicate that for the Pre-Camille and Pre-1900 options, coastal residents and those citing storm protection, recreation impact, and environmental impact as primary decision factors, were more likely to support restoration, with marginal effects of these greater for the Pre-Camille option. For the Status-Quo option, 75% of respondents voted in favor of restoration, and the offered bid was not significant; only the hurricane- protection and environmental-impact variables were significant for this option.
JEL Classification Codes: H41, Q24, Q26, Q51, Q57