Water Projects and Exurban Sprawl:
WTP for Increased Water Charges as a
Derived Demand for Environmental Amenities
“….Build It And They Will Come….”
Don McLeod*
Roger Coupal*
Scott Lieske+
and
Other W-1133 members from outside of Wyoming OR
Other Projects to Compare/Cross Reference??
* Department of Agricultural and Applied Economics
+ Wyoming Geographic Information Science Center
2006 San Antonio, TX Meetings
Purpose & Objectives
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State Water Projects
Local Land Use Planning
Water Pipeline Location and Sprawl
Impacted Environmental Amenities
Project Area
Montana
Wyoming
Sheridan County
Study Area
Background
• Water Use Subsidized
• Inelastic Water Demand
• Water Project Planning: Undervalued
Amenity Damages
• Significant Institutional Considerations
(Down Stream)
Conceptual Framework
• Random Utility Model
• Market Segments (Sample)
• SP via Choice Experiments
Cognitive Complexity
Market Realism
• MLE of Multinomial Logit
• Extract EV-WTP Welfare Estimates
Three Alternatives
(Watershed Boundary)
Serving Sheridan
Existing Conditions
Alternative A
Alternative B
Three Alternatives:
From Foothills of
Big Horn Mountains
Existing Conditions
Alternative B
Alternative A
Existing Conditions
Wild Turkey Habitat (acres)
28,174
Alternative A
24,898
22,291
Alternative B
Existing Conditions
Existing Conditions
Wood Duck Habitat (acres)
6,119
Alternative A
2,748
2,583
Alternative B
Existing Conditions
Antelope Winter Range (acres)
27,997
Alternative A
16,753
9,799
Alternative B
Existing Conditions
White Tail Deer Winter Range (acres)
34,536
33,167
Alternative A
25,804
Alternative B
Pre Data Collection Considerations!!
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Homogeneous Buffer of Development
Development Buffer and Habitat Impacts
Other Valued Attributes?
Sampling Frame/Size
Bid Levels
Anticipated Policy Relevant Outcomes