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Abstract
This paper reports on the experimental design process and considerations of a discretecontinuous
choice experiment conducted in collaboration with landholders in northern
Australia. The purpose of the research is to inform the design of effective and efficient
payments-for-ecosystem services schemes to safeguard north Australia’s biodiversity values
by promoting the contractual provision of biodiversity conservation services by landholders,
in particular pastoralists and graziers.
The paper focusses in particular on the discrete choice experimental (DCE) aspects. The DCE
is employed to estimate landholders’ preference heterogeneity for supplying ecosystem
services, specifically their willingness to accept remuneration for the on-farm conservation of
biodiversity, based on potential program attributes. The design of the choice experiment
draws on best practice standards (Hoyos 2010), a recognition of the benefits of embedding
design in a consultative process (Klojgaard et al. 2012) and recent advances in accounting for
response certainty (Brouwer et al. 2010; Hensher et al. 2012).
DCE design decisions relating to attribute selection, attribute levels, alternatives and choice
tasks are explained based on literature, focus group discussions, expert interviews and an
iterative process of efficient DCE design. Additional design aspects include (i) a set of
supplementary questions after each choice set to measure respondents’ choice certainty and
elicit decision heuristics; (ii) embedding of the experiment in a socio-economic-psychological
questionnaire, and (iii) logistical design.