African Journal of Environmental Economics and Management

African Journal of Environmental Economics and Management Vol. 1 (3), pp. 064-071, October, 2013. © International Scholars Journals
 
Full Length Research Paper

Valuing environmental impacts of coastal development projects: A choice experiment application in Spain

David Hoyos¹*, Pere Riera², Javier Fernández-Macho³, Carmen Gallastegui⁴ and Dolores Garcia⁵

¹Department of Applied Economics III (Econometrics and Statistics), University of the Basque Country, E48015 Bilbao, Spain.

²Institute of Environmental Science and Technology, Autonomous University of Barcelona, Campus UAB, E08193

Bellaterra, Spain. 

³Department of Applied Economics III (Econometrics and Statistics), Institute for Public Economics, University of the Basque Country E48015 Bilbao, Spain.

⁴Department of Foundations of Economic Analysis I, Institute for Public Economics, University of the Basque Country, E48015 Bilbao, Spain.

⁵Departament d'Economia Aplicada, Universitat de les Illes Balears, E-07122 Palma de Mallorca, Spain.

*Corresponding author. E-mail: [email protected].

Accepted 22 July, 2013

Abstract

This paper presents the results of an empirical application aimed at estimating the economic value of the potential environmental impacts to mount Jaizkibel (Spain) resulting from the construction of a new seaport over its hillside. A choice experiment technique is applied for an ex-ante natural resource damage assessment in monetary terms. The results revealed that, depending on the extent of the environmental damage, the social welfare loss would be between 172 and 535 million Euros per annum.

Key words: Choice modelling, environmental valuation, social welfare, coastal management.