Using a choice experiment to account for preference heterogeneity in wetland attributes: The case of Cheimaditida wetland in Greece

This paper aims to assist policy makers in formulating efficient and sustainable wetland management policies in accordance with the Ramsar Convention and the European Union Water Framework Directive (2000/60/EC), by providing results of a valuation study on the Cheimaditida wetland in Greece. A choice experiment is employed to estimate the values of changes in several ecological, social and economic functions that Cheimaditida wetland provides to the Greek public. In addition to the conditional logit model, a random parameter logit model, a random parameter logit model with interactions and a latent class model are estimated to account for heterogeneity in the preferences of the public for the various functions of the wetland. The results reveal that there is considerable preference heterogeneity across the public and on average they derive positive and significant values from sustainable management of this wetland. The estimated economic benefits of sustainable wetland management are weighed against the costs of alternative wetland management scenarios. Results of this cost-benefit analysis can aid in the design of socially optimal policies for sustainable management of the Cheimaditida wetland, with possible implications for other similar wetlands in Greece and the rest of Europe.