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Abstract
Analysis of the relationship between distance and willingness to pay (WTP) is important
for estimation and transfer of environmental benefits. Several contingent valuation
(CV) studies have investigated this topic, but results are mixed. This paper describes a
choice modelling (CM) application that estimates distance effects on parameters of
three environmental attributes. Combinations of these attributes create different
management policies for native vegetation. The CM study is based on a sampling procedure
that provides a geographically balanced sample and statistical tests to choose
the best specification of the distance–WTP relationship. Welfare analysis shows that
disregarding distance causes under-estimation of individual and aggregated benefits
and losses, seriously misdirecting resource allocation.