The use of most non-market valuation techniques is predicated on respondents payingadditional amounts of money for increased provision of a public good. However, in manycircumstances this may not be appropriate if the increased provision can be funded througha reallocation of existing expenditures, or if respondents reject the notion of an additionalpayment. This paper demonstrates a methodology for estimating compensating taxreallocation, which is the amount of expenditure on other public goods that respondents arewilling to forego for the government to provide more of another public good. Thisapproach is compared with the standard approach of estimating compensating surplus.Choice modelling is utilised for both approaches. The two approaches produce aggregateresults that are of a similar order of magnitude, however the relative importance of theenvironmental attributes differs across the two approaches.
|Title of host publication||Third World Congress of Environmental and Resource Economists|
|Number of pages||25|
|Publication status||Published - 2006|
|Event||Third World Congress of Environmental and Resource Economists - Kyoto, Japan, Japan|
Duration: 03 Jul 2006 → 07 Jul 2006
|Conference||Third World Congress of Environmental and Resource Economists|
|Period||03/07/06 → 07/07/06|