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Humboldt-Universität zu Berlin - Lebenswissenschaftliche Fakultät - Quarterly Journal of International Agriculture

Quarterly Journal of International Agriculture No. 4/06


Use of stated preference methods for environmental payments in Japan: comparison of contingent valuation method and choice experiments

Mitsuyasu Yabe
Kyushu University, Fukuoka, Japan

Kentaro Yoshida
University of Tsukuba, Japan


Abstract

Shiga Prefecture in Japan has been working with its residents, including farmers, to improve the water quality of Lake Biwa for more than 30 years and has introduced cost-benefit analysis for a new environmental payment system in agricultural policy. This study evaluates the benefit of this system and compares the results of the contingent valuation method (CVM) and choice experiments (CE). The payment scenario in CVM was protested by 42% of the respondents despite accepting the value of conservation agriculture itself. In the CE, however, the rate of ‘protest bids’ was only 9%. This study thus shows that CE have good characteristics in terms of protest bids and can be applied for assessing agricultural environment policies.

Keywords: contingent valuation; choice-based conjoint analysis; environmental evaluation; protest bids; water quality

JEL: Q18, Q25, Q53

Vol. 45 (2006), No. 4: 437-453