Valuing scenic amenity using life satisfaction data

• Published in: Ecological economics Vol. 72; pp. 106 - 115
• Main Authors: Ambrey, Christopher L., Fleming, Christopher M.
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 15.12.2011
• Subjects: Australia; Data processing; Ecology; Economics; Environmental economics; Geographic information systems; Geographic Information Systems (GIS); Geographical information systems; Happiness; Household, Income and Labour Dynamics in Australia (HILDA); Households; Income; Inspection; Landscape; Life satisfaction; Non-market valuation; quality of life; Remote sensing; Scenic amenity; Surveys; Valuation; Value; Wildlife; Willingness-to-pay; Australia, Queensland; Happiness; Geographic Information Systems (GIS); Household, Income and Labour Dynamics in Australia (HILDA); Non-market valuation; Scenic amenity; Life satisfaction
• ISSN: 0921-8009; 1873-6106
• DOI: 10.1016/j.ecolecon.2011.09.011

The life satisfaction approach has recently emerged as a new technique in the suite of options available to non-market valuation practitioners. Employing data from the Household, Income and Labour Dynamics in Australia (HILDA) survey and Geographic Information Systems (GIS), this paper examines the influence of scenic amenity on the life satisfaction of residents of South East Queensland (SEQ), Australia. Measuring scenic amenity on a 10-point scale, it is found that, on average, a respondent is willing-to-pay approximately AUD$14,000 in household income per annum to obtain a one-unit improvement in scenic amenity. However, on closer inspection, we find that the relationship between willingness-to-pay and the level of scenic amenity is not linear. To our knowledge, this is the first paper to value scenic amenity using the life satisfaction approach and is the first paper to use this approach to value any type of environmental good or service in SEQ. As such, this paper represents a genuine contribution to a small, yet growing, body of literature. ► We value scenic amenity in South East Queensland using the life satisfaction approach. ► A respondent is willing-to-pay AUD$14,000 in household income per annum to obtain a one unit improvement in scenic amenity. ► A non-linear relationship between willingness-to-pay and scenic amenity is identified.