TY - JOUR
T1 - Assessment of regeneration projects in urban areas of environmental interest
T2 - A stated choice approach to estimate use and quasi-option values
AU - Strazzera, Elisabetta
AU - Cherchi, Elisabetta
AU - Ferrini, Silvia
PY - 2010
Y1 - 2010
N2 - We adopt an attribute-based stated choice approach to evaluate public preferences over planning alternatives for an urban site of environmental interest. Since such projects involve some uncertainty and irreversibility, special attention is devoted to the estimation of quasi-option values associated with project development. Two distinct measures for the quasi-option value are estimated, and both coefficients indicate that the public place significant value on the reduction of the possibility of adverse irreversible effects: a more prudent development strategy is valued at about four times greater than a procedure that provides a greater chance of an undesired outcome. Furthermore, the study involves elicitation of intertemporal preferences over projects with different time spans, and estimation of the implicit discount rates: the values obtained seem high if compared with standard discount rates applied to public projects, but not far from interest rates on consumption found in the market.
AB - We adopt an attribute-based stated choice approach to evaluate public preferences over planning alternatives for an urban site of environmental interest. Since such projects involve some uncertainty and irreversibility, special attention is devoted to the estimation of quasi-option values associated with project development. Two distinct measures for the quasi-option value are estimated, and both coefficients indicate that the public place significant value on the reduction of the possibility of adverse irreversible effects: a more prudent development strategy is valued at about four times greater than a procedure that provides a greater chance of an undesired outcome. Furthermore, the study involves elicitation of intertemporal preferences over projects with different time spans, and estimation of the implicit discount rates: the values obtained seem high if compared with standard discount rates applied to public projects, but not far from interest rates on consumption found in the market.
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U2 - 10.1068/a4213
DO - 10.1068/a4213
M3 - Article
AN - SCOPUS:77449107953
SN - 0308-518X
VL - 42
SP - 452
EP - 468
JO - Environment and Planning A
JF - Environment and Planning A
IS - 2
ER -