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Testing attribute selection and variation in a choice experiment to assess the tradeoffs associated with increased mining development 2015

John Rolfe, Jill Windle
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Evaluating land use change in economic frameworks often requires non-market values to be assessed. However non-market valuation experiments can be sensitive to the way the tradeoffs are framed. The aim of the research reported in this paper was to examine the influence of varying the valuation scope and combination of attributes in a split sample choice experiment focused on assessing the impacts of increased mining activity (coal and coal seam gas) in the Surat Basin in southern Queensland, Australia. The region had traditionally been dominated by the agricultural sector. The survey was designed to assess the largely, but not exclusively, non-use values of a distant population (Brisbane (capital city) residents) for tradeoffs between positive and negative impacts, which incorporated economic, social and environmental issues. Four impact attributes were identified: (A) local jobs in the mining sector; (B) house prices in the non-mining sector; (C) wage rates in the non-mining sector, and (D) inspections and independent monitoring activity at coal seam gas mining sites (a proxy to address environmental concerns). The results indicate that varying the combination of attributes had a significant influence on preferences and welfare estimates, which varied across attributes and valuation formats.

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