Environmental Valuation with Discrete Choice Experiments: Guidance on Design, Implementation and Data Analysis

Preface
	References
Contents
Abbreviations
1 Theoretical Background
	1.1 Welfare Economics
	1.2 Random Utility Maximisation Model
	References
2 Developing the Questionnaire
	2.1 Structure of the Questionnaire
	2.2 Description of the Environmental Good
	2.3 Survey Pretesting: Focus Groups and Pilot Testing
	2.4 Incentive Compatibility
	2.5 Consequentiality
	2.6 Cheap Talk, Opt-Out Reminder and Oath Script
	2.7 Instructional Choice Sets
	2.8 Identifying Protesters
	2.9 Identifying Strategic Bidders
	2.10 Payment Vehicle and Cost Vector Design
	References
3 Experimental Design
	3.1 The Dimensionality of a Choice Experiment
		3.1.1 Number of Choice Tasks
		3.1.2 Number of Attributes
		3.1.3 Number of Alternatives
		3.1.4 Other Dimensionality Issues
	3.2 Statistical Design of the Choice Tasks
	3.3 Checking Your Statistical Design
	References
4 Collecting the Data
	4.1 Sampling Issues
	4.2 Survey Mode (Internet, Face-To-Face, Postal)
	References
5 Econometric Modelling: Basics
	5.1 Coding of Attribute Levels: Effects, Dummy or Continuous
	5.2 Functional Form of the Attributes in the Utility Function
	5.3 Econometric Models
		5.3.1 Multinomial (Conditional) Logit
		5.3.2 Mixed Logit Models—Random Parameter, Error Component and Latent Class Models
		5.3.3 G-MXL Model
		5.3.4 Hybrid Choice Models
	5.4 Coefficient Distribution in RP-MXL
	5.5 Specifics for the Cost Attribute
	5.6 Correlation Between Random Coefficients
	5.7 Assuring Convergence
	5.8 Random Draws in RP-MXL
	References
6 Econometric Modelling: Extensions
	6.1 WTP-Space Versus Preference Space
	6.2 Scale Heterogeneity
	6.3 Information Processing Strategies
	6.4 Random Regret Minimisation—An Alternative to Utility Maximisation
	6.5 Attribute Non-attendance
	6.6 Anchoring and Learning Effects
	References
7 Calculating Marginal and Non-marginal Welfare Measures
	7.1 Calculating Marginal Welfare Measures
	7.2 Aggregating Welfare Effects
	7.3 WTP Comparison
	References
8 Validity and Reliability
	8.1 The Three Cs: Content, Construct and Criterion Validity
	8.2 Testing Reliability
	8.3 Comparing Models
		8.3.1 Model Fit-Based Strategies to Choose Among Different Models
		8.3.2 Cross Validation
	8.4 Prediction
	References
9 Software
	References