Resources Science ›› 2018, Vol. 40 ›› Issue (10): 1943-1953.doi: 10.18402/resci.2018.10.04

• 资源经济 • Previous Articles     Next Articles

Application of the choice experiment to the evaluation of willingness to manage Enteromorpha prolifera disasters from the perspective of attribute cut-offs

Jingzhu SHAN1(), Jingmei LI1,2, Yufei LIN3(), Guoshan WANG3   

  1. 1. School of Economics, Ocean University of China, Qingdao 266100, China
    2. Institute of Marine Development, Ocean University of China, Qingdao 266100, China
    3. National Marine Hazard Mitigation Service, Beijing 100194, China
  • Received:2018-01-11 Revised:2018-07-24 Online:2018-10-25 Published:2018-10-20


Choice experiment is an advanced method for evaluating non-market items by acquiring individual's preference information through a series of questionnaires. Faced with a large information load of selection sets, the respondents often use cut-offs to simplify the decision-making process, which may make the traditional model selection generating biased estimates. In order to assess residents’ preference and willingness to pay for the governance of the Enteromorpha prolifera in Qingdao, we designed the choice experiment including attribute cut-offs and incorporate attribute cutoffs into the random parameter logit model. Data for this study were collected from the field research in Qingdao. The results demonstrated that attribute cut-offs and their violation can be universal. The ignorance of this situation will make the estimates biased, which illustrates the essence to introduce cut-offs into the model. Comparisons between models with/without attribute cut-offs suggest that the use of cut-offs will significantly improve the goodness-of-fit of the model and better explain the respondents’ selection behavior. Results from estimation of models further indicate that each governance attribute has a positive impact on the level of utility and the attribute cutoffs of marine coastal landscape and coastal water quality have a negative impact on the level of utility. The willingness to pay for strengthen governance of the Enteromorpha prolifera to improve the coastal landscape is 90.68 CNY, the willingness to pay to improve coastal water quality is 84.92 CNY, the willingness to pay to improve marine biological resource is 43.17 CNY, and the willingness to pay to improve biodiversity is 49.34 CNY. The overall ecological damage cost is 3.3 billion CNY per year. Compared to the traditional model, the model with attribute cut-offs will better reflect the actual marginal utility and improve the validity of the estimate of willingness to pay.

Key words: attribute cut-offs, choice experiment, the governance of Enteromorpha prolifera, willingness to pay, Qingdao