Prague Economic Papers 2010, 19(1):35-53 | DOI: 10.18267/j.pep.363

Comparison of Discrete Choice Models for Economic Environmental Research

Ondřej Vojáček1, Iva Pecáková2
1 Department of Environmental Economics, University of Economics, Prague (ovojacek1@centrum.cz).
2 Department of Statistics, University of Economics, Prague (pecakova@vse.cz).

In the paper the discrete choice models are discussed and applied based on empirical data. The main goal of the paper is to find out whether the various discrete choice models provide the analyst with the robust and reliable estimates of values of natural goods or values of changed quality of such goods. Our results indicate that the yielded value estimates using the choice experiment method and discrete choice models are applicable in expert support of decision-making on allocation of public resources to such goods, because they are stable and robust. These issues are investigated for the marginal willingness of Czech visitors to the Mácha Lake beaches to pay for the water quality and beach characteristics.

Keywords: discrete choice models, choice experiment, welfare measure, random utility theory, public goods
JEL classification: C01, C13, D61, H40

Published: January 1, 2010  Show citation

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Vojáček, O., & Pecáková, I. (2010). Comparison of Discrete Choice Models for Economic Environmental Research. Prague Economic Papers, 19(1), 35-53. doi: 10.18267/j.pep.363
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