Technical Papers
Sep 26, 2014

Discrete Choice Experiment for Groundwater Valuation: Case of the Asopos River Basin, Greece

Publication: Journal of Water Resources Planning and Management
Volume 141, Issue 7

Abstract

This paper contributes to the limited literature on the estimation of the total economic value of groundwater using a discrete choice experiment (DCE). An outline of theory and methodology is provided for the organization and application of experiments in the water sector, along with important references on optimizing outcomes and on utilizing previous valuation approaches into the design. The case study area was Viotia, Greece, and in particular the Asopos River basin aquifer, which has been in the center of international attention for the past 10 years, mainly owing to hexavalent chromium pollution. The research results give valuable insight to the respondents’ social profile and to issues valued most in cases of groundwater remediation, and perhaps more importantly to the willingness to pay for various remediation scenarios. In addition, the paper addresses other issues related to DCE, including econometric model appropriateness, selection, and comparisons; treatment of protest responses; and modeling of heterogeneity. The elicited values can be effectively used in policy making, natural resource damage assessment, and remediation planning.

Get full access to this article

View all available purchase options and get full access to this article.

Acknowledgments

This research has been cofinanced by the European Union [European Social Fund (ESF)] and Greek national funds through the operational program “Education and Lifelong Learning” of the National Strategic Reference Framework (NSRF)—Research Funding Program: Heracleitus II. Investing in knowledge society through the European Social Fund (http://erawatch.jrc.ec.europa.eu/erawatch/opencms/information/country_pages/gr/supportmeasure/support_mig_0005). The authors would like to thank their colleagues Apostolia Tsiotsia and Yiannis Sakellaris for their valuable contribution to this research, as well as the anonymous citizens of Inofyta and Oropos areas for their willing participation in this survey.

References

Adamowicz, W., Louviere, J., and William, S. M. (1994). “Combining revealed and stated preference methods for valuing environmental amenities.” J. Environ. Econ. Manage., 26(3), 271–292.
Barrio, M., and Loureiro, M. (2010). The impact of protest responses in choice experiments, Fondazione Eni Enrico Mattei, Nota di lavoro 133.2010, 41, Milan, Italy.
Barton, D. N., Taron, A., and Alvarez, B. (2002). “Using choice experiments to value irrigation water.” STRIVER technical brief, 〈http://kvina.niva.no/striver/Portals/0/documents/STRIVER_TB4.pdf〉 (May 5, 2013).
Bateman, I. J., et al. (2002). Economic valuation with stated preference techniques: A manual, Dept. for Transport, UK and Edward Elgar Publishing, U.K.
Bergstrom, J. C. (1990). “Concepts and measures of the economic value of environmental quality: A review.” J. Environ. Manage., 31(3), 215–228.
Birol, E., Karousakis, K., and Koundouri, P. (2006). “Using a choice experiment to account for preference heterogeneity in wetland attributes: The case of Cheimaditida wetland in Greece.” Ecol. Econ., 60(1), 145–156.
Birol, E., and Koundouri, P. (2008). “Introduction.” Choice experiments informing environmental policy: A European perspective, E. Birol and P. Koundouri, eds., Cheltenham, U.K., 1–11.
Birol, E., Koundouri, P., and Kountouris, Y. (2008). “Applications of the choice experiment method in Europe: A review.” Choice experiments informing environmental policy: A European perspective, E. Birol and P. Koundouri, eds., Edward Elgar, U.K., 12–57.
Blamey, R., Gordon, J., and Chapman, R. (1999). “Choice modelling: Assessing the environmental values of water supply options.” Aust. J. Agric. Resour. Econ., 43(3), 337–357.
Blamey, R. K., Bennett, J. W., Louviere, J. J., Morrison, M. D., and Rolfe, J. (2000). “A test of policy labels in environmental choice modelling studies.” Ecol. Econ., 32(2), 269–286.
Braden, J. B. (2000). “Value of valuation: Introduction.” J. Water Resour. Plann. Manage., 336–338.
Bullock, C., and O’Shea, R. (2013). “The environmental liability directive, its application in Ireland and a general introduction to the valuation of ecosystem services.” ECORISK—Environmental liability, resource equivalency and the valuation of ecosystem services, EPA Strive Programme, Univ. College Dublin, 〈http://www.ecorisk.ie〉 (Feb. 3, 2014).
Carlsson, F., Frykblom, P., and Liljenstolpe, C. (2003). “Valuing wetland attributes: An application of choice experiments.” Ecol. Econ., 47(1), 95–103.
Dunford, R. W. (2000). “Estimating ground-water damages from hazardous-substance releases.” J. Water Resour. Plann. Manage., 366–373.
EFTEC. (2002). “Valuation of benefits to England and Wales of a revised bathing water quality directive and other beach characteristics using the choice experiment methodology.” Final Rep., Dept. for Environment, Food and Rural Affairs, Economics for the Environment Consultancy, London, U.K.
Flores, N. E. (2003). “Conceptual framework for nonmarket valuation.” A primer on nonmarket valuation, P. A. Champ, K. J. Boyle, and T. C. Brown, eds., Kluwer Academic, Dordrecht, Netherlands, 27–57.
Freeman, A. M., III. (2003). “Economic valuation: What and why.” A primer on nonmarket valuation, P. A. Champ, K. J. Boyle, and T. C. Brown, eds., Kluwer Academic, Netherlands, 1–25.
Getzner, M. (2014). “The importance of free-flowing rivers for recreation: A case-study of the River Mur (Styria, Austria).” J Water Resour. Plann. Manage, 04014050.
Giannoulopoulos, P. (2008). Hydrogeological—Hydro-chemical survey of groundwater quality in the wider area of Asopos River basin, Viotia prefecture, Institute of Geology and Mineral Exploration (IGME), Athens, Greece (in Greek).
Greene, W. H. (2012). Econometric analysis, 7th Ed., Prentice Hall, Upper Saddle River, NJ.
Greene, W. H., and Hensher, D. A. (2003). “A latent class model for discrete choice analysis: Contrasts with mixed logit.” Transp. Res. Part B, 37(8), 681–698.
Hanley, N., Mourato, S., and Wright, R. E. (2001). “Choice modelling approaches: A superior alternative for environmental valuation?” J. Econ. Surv., 15(3), 435–462.
Hanley, N., Wright, R. E., and Adamowicz, V. (1998). “Using choice experiments to value the environment: Design issues, current experience and future prospects.” Environ. Resour. Econ., 11(3–4), 413–428.
Hanley, N., Wright, R. E., and Alvarez-Farizo, B. (2006). “Estimating the economic value of improvements in river ecology using choice experiments: An application to the water framework directive.” J. Environ. Manage., 78(2), 183–193.
Hasler, B., Lundhede, T., Martinsen, L., Neye, S., and Schou, J. S. (2005). “Valuation of groundwater protection versus water treatment in Denmark by choice experiments and contingent valuation.”, National Environmental Research Institute, Ministry of Environment, Copenhagen, Denmark.
Hensher, D., Shore, N., and Train, K. (2005a). “Households’ willingness to pay for water service attributes.” Environ. Resour. Econ., 32(4), 509–531.
Hensher, D. A. (2010). “Attribute processing, heuristics, and preference construction in choice analysis.” Choice modelling: The state-of-the-art and state-of-practice, S. Hess and A. Daly, eds., Emerald Group, Bingley, U.K., 35–70.
Hensher, D. A., Rose, J. M., and Greene, W. H. (2005b). Applied choice analysis: A primer, 4th Ed., Cambridge University Press, Cambridge, U.K.
Hess, S., Ben-Akiva, M., Gopinath, D., and Walker, J. (2009). “Taste heterogeneity, correlation and elasticities in latent class choice models.” Proc., Int. Choice Modelling Conf., Emerald, Bingley, U.K.
Hole, A. R. (2007). “Modelling heterogeneity in patients’ preferences for the attributes of a general practitioner appointment.” CHE Research Paper 22, Univ. of York, U.K.
Hoyos, D. (2010). “The state of the art of environmental valuation with discrete choice experiments.” Ecol. Econ., 69(8), 1595–1603.
Johnson, F. R., Kanninen, B., Bingham, M., and Ozdemir, S. (2006). “Experimental design for stated choice studies.” Valuing environmental amenities using stated choice studies, B. J. Kanninen, ed., Springer, Dordrecht, Netherlands, 159–202.
Jones, C. (2000). “Economic valuation of resource injuries in natural resource liability suits.” J. Water Resour. Plann. Manage., 358–365.
Karavokyris, J., Antonaropoulos, P., Epem, S. A., and Stavropoulos, X. (2008). “Development of systems and tools for water resources management for water districts of western Sterea Ellada, Epirus, Attica, eastern Sterea Ellada and Thessaly.” Technical Rep., Ministry of Development, Athens, Greece (in Greek).
Kosenius, A. K. (2010). “Heterogeneous preferences for water quality attributes: The case of eutrophication in the Gulf of Finland, the Baltic Sea.” Ecol. Econ., 69(3), 528–538.
Koundouri, P., et al. (2012). “The value of scientific information on climate change: A choice experiment on Rokua esker, Finland.” J. Environ. Econ. Policy, 1(1), 85–102.
Koundouri, P., Scarpa, R., and Stithou, M. (2013). “A choice experiment for the estimation of the economic value of the river ecosystem: Management policies for sustaining NATURA (2000) species and the coastal environment.” Water resources management sustaining socio-economic welfare: The implementation of the European Water Framework Directive in Asopos River Basin in Greece, P. Koundouri, N. Papandreou, and M. Stithoueds, eds., Vol. 7, Springer, Dordrecht, Netherlands.
Kragt, M. E., and Bennett, J. W. (2012). “Attribute framing in choice experiments: How do attribute level descriptions affect value estimates?” Environ. Resour. Econ., 51(1), 43–59.
Lahontan Regional Water Quality Control Board (LRWQCB). (2013). “Hinkley compressor station chromium contamination cleanup.” 〈http://www.swrcb.ca.gov/rwqcb6/water_issues/projects/pge/index.shtml〉 (Sep. 7, 2013).
Lancaster, K. (1966). “A new approach to consumer theory.” J. Polit. Econ., 74(2), 132–157.
Laoudi, A., Tentes, G., and Damigos, D. (2011). “Groundwater damage: A cost-based valuation for Asopos River basin.” Proc., 3rd Int. Conf. on Environmental Management, Engineering, Planning and Economics (CEMEPE) & SECOTOX Conf., Grafima Publishing, Thessaloniki, Greece.
Liu, X., Sarr, M., and Swanson, T. (2012). “Inequality, information and groundwater management—A case study in rural Tunisia.” Fondazione Eni Enrico Mattei, 〈http://www.feem-project.net/belpasso_2012/files/studpapers/Paper_Liu.pdf〉 (May 7, 2013).
Louviere, J. J., and Hensher, D. A. (1982). “On the design and analysis of simulated choice or allocation experiments in travel choice modeling.”, Transportation Research Board, Washington, DC, 11–17.
Louviere, J. J., Hensher, D. A., and Swait, J. D. (2000). Stated choice methods: Analysis and applications, Cambridge University Press, Cambridge, U.K.
Louviere, J. J., and Woodworth, G. (1983). “Design and analysis of simulated consumer choice or allocation experiments—An approach based on aggregate data.” J. Marketing Res., 20(4), 350–367.
Lundhede, T., and Hasler, B. (2005). “Valuation of the non-market benefits of groundwater protection.” River basin management III, C. A. Brebbia and J. S. Antunes Do Carmo, eds., WITPRESS, Southampton, U.K., 237–246.
MacAlister Elliott and Partners (MEP), and Economic for the Environment Consultancy (EFTEC). (2001). Study on the valuation and restoration of damage to natural resources for the purpose of environmental liability, European Commission, Directorate—General Environment, Brussels, Belgium.
Manski, C. F. (1977). “The structure of random utility models.” Theor. Decis., 8(3), 229–254.
Mazzanti, M. (2003). “Discrete choice models and valuation experiments.” J. Econ. Stat., 30(6), 584–604.
McFadden, D. (1974). “Conditional logit analysis of qualitative choice behavior.” Frontiers in econometrics, P. Zarembka, ed., Academic, New York, 105–142.
Meleddu, M. (2012). “Host communities’ preferences in a multidimensional framework: evaluation of repeated choice experiments.” Doctoral thesis, Universita degli studi di Sassari, Sassari, Italy.
Meyerhoff, J., and Liebe, U. (2008). “Do protest responses to a contingent valuation question and a choice experiment differ?” Environ. Resour. Econ., 39(4), 433–446.
Morey, E., Thiene, M., De Salvo, M., and Signorello, G. (2008). “Using attitudinal data to identify latent classes that vary in their preference for landscape preservation.” Ecol. Econ., 68(1–2), 536–546.
Nunes, P. A. L. D., Rossetto, L., and de Blaeij, A. (2004). “Measuring the economic value of alternative clam fishing management practices in the Venice lagoon: Results from a conjoint valuation application.” J. Mar. Syst., 51(1–4), 309–320.
Organization for Economic Cooperation and Development (OECD). (2012). Liability for environmental damage in Eastern Europe, Caucasus and Central Asia (EECCA): Implementation of good international practices, Environmental Action Programme (EAP) Task Force, Lucerne, Switzerland.
Panagopoulos, Y., Makropoulos, C., Kossida, M., and Mimikou, M. (2013). “Optimal implementation of irrigation practices: Cost-effective desertification action plan for the Pinios basin.” J. Water Resour. Plann. Manage., 05014005.
Pulido-Velazquez, M., Alvarez-Mendiola, E., and Andreu, J. (2013). “Design of efficient water pricing policies integrating basinwide resource opportunity costs.” J. Water Resour. Plann. Manage., 583–592.
Pulido-Velazquez, M., Andreu, J., and Sahuquillo, A. (2006). “Economic optimization of conjunctive use of surface water and groundwater at the basin scale.” J. Water Resour. Plann. Manage., 454–467.
Qiu, Z., et al. (2014). “Hydrologically sensitive areas, land use controls, and protection of healthy watersheds.” J. Water Resour. Plann. Manage., 04014011.
Raghavarao, D., Wiley, J. B., and Chitturi, P. (2011). Choice-based conjoined analysis, Chapman & Hall/CRC, FL.
Rolfe, J., and Bennett, J. (2009). “The impact of offering two versus three alternatives in choice modelling experiments.” Ecol. Econ., 68(4), 1140–1148.
Scarpa, R., Ferrini, S., and Willis, K. (2005). “Performance of error component models for status-quo effects in choice experiments.” Applications of simulation methods in environmental and resource economics, R. Scarpa, ed., Springer, Dordrecht, Netherlands, 247–273.
Scarpa, R., Willis, K. G., and Acutt, M. (2007). “Valuing externalities from water supply: Status quo, choice complexity and individual random effects in panel kernel logit analysis of choice experiments.” J. Environ. Plan. Manage., 50(4), 449–466.
Sevenant, M., and Antrop, M. (2010). “The use of latent classes to identify individual differences in the importance of landscape dimensions for aesthetic preference.” Land Use Policy, 27(3), 827–842.
Stithou, M., Hynes, S., Hanley, N., and Campbell, D. (2012). “Estimating the value of achieving ‘good ecological status’ in the Boyne River catchment in Ireland using choice experiments.” Econ. Soc. Rev., 43(3), 397–422.
Tempesta, T., and Vecchiato, D. (2013). “Riverscape and groundwater preservation: A choice experiment.” Environ. Manage., 52(6), 1487–1502.
Tentes, G., and Damigos, D. (2011). “The lost value of groundwater: The case of Asopos River basin in central Greece.” Water Resour. Manage., 26(1), 147–164.
Tentes, G., Rigas, N., and Damigos, D. (2013a). “Measuring the passive use values of groundwater: A contingent valuation survey.” Proc., 4th Int. Conf. on Environmental Management, Engineering, Planning and Economics (CEMEPE) & SECOTOX Conf., Grafima Publishing, Thessaloniki, Greece.
Tentes, G., Tsiotsia, A., and Damigos, D. (2013b). “Environmental cost of groundwater pollution: A choice experiment in Asopos River basin.” Proc., 1stEWaS-MED Int. Conf., Aristotle Univ. of Thessaloniki, Greece.
Train, K. E. (2008). “EM algorithms for nonparametric estimation of mixing distributions.” J. Choice Modell., 1(1), 40–69.
Wattage, P., Glenn, H., Mardle, S., Van Rensburg, T., Grehan, A., and Foley, N. (2011). “Economic value of conserving deep-sea corals in Irish waters: A choice experiment study on marine protected areas.” Fish Res., 107(1–3), 59–67.
Willis, K. G., McMahon, P. L., Garrod, G. D., and Powe, N. A. (2002). “Water companies’ service performance and environmental trade-offs.” J. Environ. Plann. Manage., 45(3), 363–379.
Willis, K. G., Scarpa, R., and Acutt, M. (2005). “Assessing water company customer preferences and willingness to pay for service improvements: A stated choice analysis.” Water Resour. Res., 41(2), 1–11.
Ziogas, C., et al. (2009). “The problem of Asopos River—Remediation proposals.” Environmental Working Group Rep., Technical Chamber of Greece, Athens, Greece.

Information & Authors

Information

Published In

Go to Journal of Water Resources Planning and Management
Journal of Water Resources Planning and Management
Volume 141Issue 7July 2015

History

Received: Aug 1, 2013
Accepted: Aug 5, 2014
Published online: Sep 26, 2014
Discussion open until: Feb 26, 2015
Published in print: Jul 1, 2015

Permissions

Request permissions for this article.

Authors

Affiliations

G. Tentes, Ph.D. [email protected]
Mining Engineer, School of Mining and Metallurgical Engineering, National Technical Univ. of Athens, K.Tzermia 6, 15121 Pefki Athens, Greece (corresponding author). E-mail: [email protected]
D. Damigos, Ph.D. [email protected]
Mining Engineer, Assistant Professor in the School of Mining and Metallurgical Engineering, National Technical Univ. of Athens, Iroon Polytechneiou 9, 157 80 Zografou, Athens, Greece. E-mail: [email protected]

Metrics & Citations

Metrics

Citations

Download citation

If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.

Cited by

View Options

Get Access

Access content

Please select your options to get access

Log in/Register Log in via your institution (Shibboleth)
ASCE Members: Please log in to see member pricing

Purchase

Save for later Information on ASCE Library Cards
ASCE Library Cards let you download journal articles, proceedings papers, and available book chapters across the entire ASCE Library platform. ASCE Library Cards remain active for 24 months or until all downloads are used. Note: This content will be debited as one download at time of checkout.

Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.
ASCE Library Card (5 downloads)
$105.00
Add to cart
ASCE Library Card (20 downloads)
$280.00
Add to cart
Buy Single Article
$35.00
Add to cart

Get Access

Access content

Please select your options to get access

Log in/Register Log in via your institution (Shibboleth)
ASCE Members: Please log in to see member pricing

Purchase

Save for later Information on ASCE Library Cards
ASCE Library Cards let you download journal articles, proceedings papers, and available book chapters across the entire ASCE Library platform. ASCE Library Cards remain active for 24 months or until all downloads are used. Note: This content will be debited as one download at time of checkout.

Terms of Use: ASCE Library Cards are for individual, personal use only. Reselling, republishing, or forwarding the materials to libraries or reading rooms is prohibited.
ASCE Library Card (5 downloads)
$105.00
Add to cart
ASCE Library Card (20 downloads)
$280.00
Add to cart
Buy Single Article
$35.00
Add to cart

Media

Figures

Other

Tables

Share

Share

Copy the content Link

Share with email

Email a colleague

Share