IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v190y2021ics0921800921002445.html
   My bibliography  Save this article

Measuring the economic value of urban river restoration

Author

Listed:
  • Dai, Dan
  • Brouwer, Roy
  • Lei, Kun

Abstract

Rivers are under enormous threat worldwide and large amounts of money are invested in river restoration. Contrary to the costs, the benefits of river restoration are much harder to quantify. In this study, the benefits of restoring different sections of the Yongding River in Beijing, China, are estimated through a discrete choice experiment (DCE). Place attachment is measured by sampling residents upstream and downstream and using the river sections as labelled alternatives in the DCE. As expected, the improvement of water quality is valued highly by all river basin residents, and place attachment and spatial preference heterogeneity play a significant role in public willingness to pay (WTP) for river restoration. Although respondents are willing to give up only a small share of their disposable income, public WTP for improved river water quality is a factor 2 to 4 higher than the current household water bill. These findings provide important guidance for the recovery of the investment costs associated with river restoration projects.

Suggested Citation

  • Dai, Dan & Brouwer, Roy & Lei, Kun, 2021. "Measuring the economic value of urban river restoration," Ecological Economics, Elsevier, vol. 190(C).
    • Handle: RePEc:eee:ecolec:v:190:y:2021:i:c:s0921800921002445
    DOI: 10.1016/j.ecolecon.2021.107186
    as

    Download full text from publisher

    File URL: https://www.sciencedirect.com/science/article/pii/S0921800921002445
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ecolecon.2021.107186?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yoon Lee & Hwansuk Kim & Yongsuk Hong, 2016. "Revealed Preference and Effectiveness of Public Investment in Ecological River Restoration Projects: An Application of the Count Data Model," Sustainability, MDPI, vol. 8(4), pages 1-13, April.
    2. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    3. Roy Brouwer & Thijs Dekker & John Rolfe & Jill Windle, 2010. "Choice Certainty and Consistency in Repeated Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 46(1), pages 93-109, May.
    4. Yonghua Zhu & Sam Drake & Haishen Lü & Jun Xia, 2010. "Analysis of Temporal and Spatial Differences in Eco-environmental Carrying Capacity Related to Water in the Haihe River Basins, China," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 24(6), pages 1089-1105, April.
    5. Guan, Dabo & Hubacek, Klaus, 2007. "Assessment of regional trade and virtual water flows in China," Ecological Economics, Elsevier, vol. 61(1), pages 159-170, February.
    6. Fanus Asefaw Aregay & Liuyang Yao & Minjuan Zhao, 2016. "Spatial Preference Heterogeneity for Integrated River Basin Management: The Case of the Shiyang River Basin, China," Sustainability, MDPI, vol. 8(10), pages 1-17, September.
    7. Hoyos, David, 2010. "The state of the art of environmental valuation with discrete choice experiments," Ecological Economics, Elsevier, vol. 69(8), pages 1595-1603, June.
    8. Marije Schaafsma & Roy Brouwer, 2020. "Substitution Effects in Spatial Discrete Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(2), pages 323-349, February.
    9. Greene, William H. & Hensher, David A., 2003. "A latent class model for discrete choice analysis: contrasts with mixed logit," Transportation Research Part B: Methodological, Elsevier, vol. 37(8), pages 681-698, September.
    10. C. J. Vörösmarty & P. B. McIntyre & M. O. Gessner & D. Dudgeon & A. Prusevich & P. Green & S. Glidden & S. E. Bunn & C. A. Sullivan & C. Reidy Liermann & P. M. Davies, 2010. "Global threats to human water security and river biodiversity," Nature, Nature, vol. 467(7315), pages 555-561, September.
    11. Ivana Logar & Roy Brouwer, 2018. "Substitution Effects and Spatial Preference Heterogeneity in Single- and Multiple-Site Choice Experiments," Land Economics, University of Wisconsin Press, vol. 94(2), pages 302-322.
    12. Dias, Vitor & Belcher, Ken, 2015. "Value and provision of ecosystem services from prairie wetlands: A choice experiment approach," Ecosystem Services, Elsevier, vol. 15(C), pages 35-44.
    13. C. J. Vörösmarty & P. B. McIntyre & M. O. Gessner & D. Dudgeon & A. Prusevich & P. Green & S. Glidden & S. E. Bunn & C. A. Sullivan & C. Reidy Liermann & P. M. Davies, 2010. "Erratum: Global threats to human water security and river biodiversity," Nature, Nature, vol. 468(7321), pages 334-334, November.
    14. He, Guojian & Fang, Hongwei & Bai, Sen & Liu, Xiaobo & Chen, Minghong & Bai, Jing, 2011. "Application of a three-dimensional eutrophication model for the Beijing Guanting Reservoir, China," Ecological Modelling, Elsevier, vol. 222(8), pages 1491-1501.
    15. Roy Brouwer & Julia Martin-Ortega & RJulio Berbel, 2010. "Spatial Preference Heterogeneity: A Choice Experiment," Land Economics, University of Wisconsin Press, vol. 86(3).
    16. Brouwer, Roy & Martín-Ortega, Julia, 2012. "Modeling self-censoring of polluter pays protest votes in stated preference research to support resource damage estimations in environmental liability," Resource and Energy Economics, Elsevier, vol. 34(1), pages 151-166.
    17. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    18. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-719, November.
    19. Andrew Daly & Stephane Hess & Kenneth Train, 2012. "Assuring finite moments for willingness to pay in random coefficient models," Transportation, Springer, vol. 39(1), pages 19-31, January.
    20. Tarfasa, Solomon & Brouwer, Roy, 2018. "Public preferences for improved urban waste management: a choice experiment," Environment and Development Economics, Cambridge University Press, vol. 23(2), pages 184-197, April.
    21. Larson, Silva & Stoeckl, Natalie & Neil, Barbara & Welters, Riccardo, 2013. "Using resident perceptions of values associated with the Australian Tropical Rivers to identify policy and management priorities," Ecological Economics, Elsevier, vol. 94(C), pages 9-18.
    22. Marije Schaafsma & Roy Brouwer & Alison Gilbert & Jeroen van den Bergh & Alfred Wagtendonk, 2013. "Estimation of Distance-Decay Functions to Account for Substitution and Spatial Heterogeneity in Stated Preference Research," Land Economics, University of Wisconsin Press, vol. 89(3), pages 514-537.
    23. Matteo Mattmann & Ivana Logar & Roy Brouwer, 2019. "Choice certainty, consistency, and monotonicity in discrete choice experiments," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 8(2), pages 109-127, April.
    24. Faccioli, Michela & Czajkowski, Mikołaj & Glenk, Klaus & Martin-Ortega, Julia, 2020. "Environmental attitudes and place identity as determinants of preferences for ecosystem services," Ecological Economics, Elsevier, vol. 174(C).
    25. Ovando, Paola & Brouwer, Roy, 2019. "A review of economic approaches modeling the complex interactions between forest management and watershed services," Forest Policy and Economics, Elsevier, vol. 100(C), pages 164-176.
    26. Courant, Paul N. & Porter, Richard C., 1981. "Averting expenditure and the cost of pollution," Journal of Environmental Economics and Management, Elsevier, vol. 8(4), pages 321-329, December.
    27. Nick Hanley & Sergio Colombo & Dugald Tinch & Andrew Black & Ashar Aftab, 2006. "Estimating the benefits of water quality improvements under the Water Framework Directive: are benefits transferable?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 33(3), pages 391-413, September.
    28. Ian J. Bateman & Richard T. Carson & Brett Day & Michael Hanemann & Nick Hanley & Tannis Hett & Michael Jones-Lee & Graham Loomes, 2002. "Economic Valuation with Stated Preference Techniques," Books, Edward Elgar Publishing, number 2639.
    29. I. Bateman & R. Brouwer & S. Ferrini & M. Schaafsma & D. Barton & A. Dubgaard & B. Hasler & S. Hime & I. Liekens & S. Navrud & L. De Nocker & R. Ščeponavičiūtė & D. Semėnienė, 2011. "Making Benefit Transfers Work: Deriving and Testing Principles for Value Transfers for Similar and Dissimilar Sites Using a Case Study of the Non-Market Benefits of Water Quality Improvements Across E," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(3), pages 365-387, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhang, Yang & Zhang, Kun & Liu, Congyan & Li, Fangshu & Xu, Bing, 2023. "Influence of the perceived neighborhood environment on Paying for domestic waste management services in rural China: Evidence from the Xiangtan Prefecture," Utilities Policy, Elsevier, vol. 85(C).
    2. Aurelian Cosmin Moldovan & Tomi Alexandrel Hrăniciuc & Valer Micle & Nicolae Marcoie, 2023. "Research on the Sustainable Development of the Bistrita Ardeleana River in Order to Stop the Erosion of the Riverbanks and the Thalweg," Sustainability, MDPI, vol. 15(9), pages 1-22, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    2. Doherty, Edel & Murphy, Geraldine & Hynes, Stephen & Buckley, Cathal, 2014. "Valuing ecosystem services across water bodies: Results from a discrete choice experiment," Ecosystem Services, Elsevier, vol. 7(C), pages 89-97.
    3. Doherty, Edel & Murphy, Geraldine & Hynes, Stephen & Buckley, Cathal, 2013. "Are similar ecosystem services valued differently across different water body types: A discrete choice analysis of rivers, lakes and sea attributes?," Working Papers 160055, National University of Ireland, Galway, Socio-Economic Marine Research Unit.
    4. Sardaro, Ruggiero & Faccilongo, Nicola & Roselli, Luigi, 2019. "Wind farms, farmland occupation and compensation: Evidences from landowners’ preferences through a stated choice survey in Italy," Energy Policy, Elsevier, vol. 133(C).
    5. Gebreegziabher, Z. & Mekonnen, A. & Beyene, A.D. & Hagos, F., 2018. "Valuation of access to irrigation water in rural Ethiopia: application of choice experiment and contingent valuation methods," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277168, International Association of Agricultural Economists.
    6. Tavárez, Héctor & Álamo, Carmen & Cortés,Mildred, 2020. "Differentiated coffees and their potential markets in Puerto Rico: An economic valuation approach," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 20(02), December.
    7. Marije Schaafsma & Roy Brouwer, 2020. "Substitution Effects in Spatial Discrete Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(2), pages 323-349, February.
    8. Ruggiero Sardaro & Nicola Faccilongo & Francesco Contò & Piermichele La Sala, 2021. "Adaption Actions to Cope with Climate Change: Evidence from Farmers’ Preferences on an Agrobiodiversity Conservation Programme in the Mediterranean Area," Sustainability, MDPI, vol. 13(11), pages 1-17, May.
    9. Mavra Stithou & Stephen Hynes & Nick Hanley & Danny Campbell, 2012. "Estimating the Value of Achieving “Good Ecological Status”in the Boyne River Catchmentin Ireland Using Choice Experiments," The Economic and Social Review, Economic and Social Studies, vol. 43(3), pages 397-422.
    10. Valeria M. Toledo‐Gallegos & Jed Long & Danny Campbell & Tobias Börger & Nick Hanley, 2021. "Spatial clustering of willingness to pay for ecosystem services," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(3), pages 673-697, September.
    11. Robert J. Johnston & Ewa Zawojska, 2020. "Relative Versus Absolute Commodity Measurements in Benefit Transfer: Consequences for Validity and Reliability," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(4), pages 1245-1270, August.
    12. Talpur, Musharaf & Brouwer, Roy & Koetse, Mark, 2019. "Opt-Out Forced Choice Effect in Combined Revealed and Stated Preference Discrete Choice Models: A Gender Perspective," MPRA Paper 99631, University Library of Munich, Germany.
    13. Roy Brouwer & Solomon Tarfasa, 2020. "Testing hypothetical bias in a framed field experiment," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 68(3), pages 343-357, September.
    14. de Ayala, Amaia & Hoyos, David & Mariel, Petr, 2015. "Suitability of discrete choice experiments for landscape management under the European Landscape Convention," Journal of Forest Economics, Elsevier, vol. 21(2), pages 79-96.
    15. Sardaro, Ruggiero & La Sala, Piermichele & De Pascale, Gianluigi & Faccilongo, Nicola, 2021. "The conservation of cultural heritage in rural areas: Stakeholder preferences regarding historical rural buildings in Apulia, southern Italy," Land Use Policy, Elsevier, vol. 109(C).
    16. Chiadmi, Ines & Traoré, Sidnoma Abdoul Aziz & Salles, Jean-Michel, 2020. "Asian tiger mosquito far from home: Assessing the impact of invasive mosquitoes on the French Mediterranean littoral," Ecological Economics, Elsevier, vol. 178(C).
    17. Logar, Ivana & Brouwer, Roy & Campbell, Danny, 2020. "Does attribute order influence attribute-information processing in discrete choice experiments?," Resource and Energy Economics, Elsevier, vol. 60(C).
    18. D'Alberto, Riccardo & Zavalloni, Matteo & Raggi, Meri & Viaggi, Davide, 2021. "A Statistical Matching approach to reproduce the heterogeneity of willingness to pay in benefit transfer," Socio-Economic Planning Sciences, Elsevier, vol. 74(C).
    19. Meles, Tensay Hadush & Ryan, Lisa & Mukherjee, Sanghamitra C., 2022. "Heterogeneity in preferences for renewable home heating systems among Irish households," Applied Energy, Elsevier, vol. 307(C).
    20. Mamine, Fateh & Fares, M'hand & Minviel, Jean Joseph, 2020. "Contract Design for Adoption of Agrienvironmental Practices: A Meta-analysis of Discrete Choice Experiments," Ecological Economics, Elsevier, vol. 176(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:190:y:2021:i:c:s0921800921002445. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.elsevier.com/locate/ecolecon .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.