Effect of Distance on Willingness to Pay

Abstract

The relationship between geographical distance and the willingness to pay for preservation and improvement of particular environmental goods are generally thought to be negative. As shown by the negatively sloped curve in Fig. 10.1, various studies including Sutherland and Walsh (1985), Hannon (1994), Pate and Loomis (1997) also have found this relationship to be negative and argued through empirical analysis. According to them the more away the respondent resides form the area, the less likely heishe would be willing to pay for improvements or conservation of it. Although these arguments are logical, it is difficult to accept this relationship to be universal. Because environmental goods in different countries have different surrounding environment and various judgment work behind their preservation. Our first case study ‘the Isahaya Bay Wetland’ is famous in Japan for its difficult and complex nature of the problem. Hence, it is interesting to verify whether negative relationship also exists between distance of the respondent to the area and the willingness to pay for preservation of it.