Real-payment choice experiments: Valuing forested wetlands and spatial attributes within a landscape context

We consider the choice experiment approach to valuation, due to its focus on tradeoffs between alternatives. Our study is not hypothetical, but implements a real-payment choice experiment (CE) for a multi-attribute good. We use two real wetland parcels to create over 18 descriptions of parcels for conservation under a 10-year development-rights contract. Our payment protocol mitigates incentives to understate willingness to pay through a provision point with a rebate of excess funds. Real choice questions captured significant values for spatial attributes of wetland conservation. Average respondents positively valued 73-acre parcels surrounded by woodland, but required 100acres for parcels surrounded by residential or farm land, and accepted a 19-acre smaller parcel in exchange for full public access. ► The study develops a real-money approach to implementing choice experiments. ► We study valuation of forested wetlands, including acreage, public access, and surrounding lands. ► Actual payment was required under a provision point and proportional rebate mechanism. ► Results suggest that public access was equivalent to adding 19acres to a parcel with no access. ► Rhode Island, USA, residents valued sites in wooded areas over sites in farm or residential areas.