Working Paper : 1132

Authors Koundouri, P., Kougea, E., Stithou, M., Ala-Aho, P., Eskelinen, R., Karjalainen, T., Klove, B., Pulido-Velazquez, M., Reinikainen, K. and Rossi, P.
Title The Value of Scientific Information on Climate Change: A Choice Experiment on Rokua esker, Finland
Abstract This paper presents an application of the choice experiment method in order to provide estimates of economic values generated by water quantity improvements. More importantly, this is the first choice experiment study valuing scientific information and in particular scientific information on climate change. The case study of interest is Rokua in Northern Finland, a groundwater dependent ecosystem very sensitive to climate change and natural variability. The study deals with the uncertainty about the actual dynamics of the system and the effect of future climate change, by exploring whether the public values improved scientific information in a choice experiment context. Data are analysed using a nested multinomial logit model. Evidence from this study suggests that individuals are willing to pay for an increase in scientific research to better understand long-terms environmental changes and as a result policy should consider investing and supporting related research. Particularly, apart from water quantity and recreation, investment on scientific research appears to be a significant factor in the choice of a water management policy, demonstrating also a higher value compared to the other changes that management practices are going to bring.
Keywords choice experiment method, nested logit model, willingness to pay, improved scientific information, groundwater management practices.
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