Consumer Preferences for the Provision of Water Quality Services by Oysters
Date
2016-03
Journal Title
Journal ISSN
Volume Title
Publisher
Department of Applied Economics and Statistics, University of Delaware, Newark, DE.
Abstract
In the United States and many other countries around the world, estuary eutrophication is a major
environmental problem that can result in harmful algal blooms with detrimental impacts on eco-systems
and humans, while imposing substantial costs. Oysters are suspension feeders, filtering phytoplankton
from water anad thereby reducing organic matter, the primary driver of eutrophication. The U.D.
National Oceanic and Atmospheric Administration (NOAA) supports using shellfish aquaculture as a
nutrient management practice. Our revealed preference dichotomous choice experiments test if
participants are willing to pay price premiums for oysters that provide eco-system services. Results
suggest that if oysters are from waters containing an unknown amount of nutrients, providing
participants with information does not have an effect. However, providing partcipants with information
about eutrophication and oysters’ ability to filter nutrients from water makes them more likely to
choose oysters from low nutrient waters. Oysters from moderate and high nutrient waters, which
provide larger eco-system services, are significantly more likely to be selected if participants receive no
information.
Description
Keywords
Experimental economics, Revealed preferences, Dichotomous choice, Eco-system services, Oysters, Willingness to pay
Citation
Kecinski, M., K.D. Messer, A.J. Peo. 2016. “Consumer Preferences for the Provision of Water Quality Services by Oysters” Applied Economics & Statistics Research Report, University of Delaware, RR16-02.