Using Choice Experiment to Value Zarinehroud’s Environmental Functions Improvement

Document Type : مقاله کوتاه


1 Department of Interdisciplinary Economics, Faculty of Economics, University of Tehran, Tehran, Iran

2 Faculty of Economics, University of Tehran, Tehran, Iran


Zarinehroud River in Basin of the Urmia Lake is one the major lake's water provider that recently its water controlled to use in agriculture, industrial and domestic sectors. Development projects on the river basin didn't consider sustainability and consequently caused environmental changes like species extinction, direct habitat destruction and reducing environmental quality in the region. These also accelerate lake drying. Due the important functions of Zarinehroud, in this article using choice experiment technique we tried to estimate individual's willingness to pay to improve environmental attributes of the river. Result shows that people are willing to pay for environmental services. They choose diversity of species in first rank and willing to pay 6200 Iranian Rials in average to improve this attribute. Environmental amenities improvement with 6040 Rials, Environmental perspectives improvement with 4310 Rials, Improving recreational potentials with 2770 Rials and saving resource's water for other environmental uses with 2400 Rials were ranked in respect after diversity of species.


  1. WWC. A Water Secure World: Vision for Water, Life and the Environment. (assessed: October, 20, 2014).
  2. Freeman A M. "Non-use values in natural resource damage assessments: RJ Kopp & VK Smith Valuing natural assets, the economics of natural resource damage assessment." Washington, DC: Resources for the Future, 1993.
  3. WARWA. Rivers of Lake Urmia Basin,, (assessed: September 07, 2013). [In Persian].
  4. Adamowicz V, Boxall P. "Future directions of stated choice methods for environment valuation." Choice experiments: A new approach to environmental valuation, London, 2001: 1-6
  5. McFadden D. "Conditional logit analysis of qualitative choice behavior." (1973): 105.
  6. Manski C F. "The structure of random utility models." Theory and decision, 1977;8(3): 229-254.
  7. Bansback N et al. "Using a discrete choice experiment to estimate health state utility values." Journal of health economics 2012;31(1): 306-318.
  8. Holmes TP, Adamowicz L. "Attribute-based methods." A primer on nonmarket valuation. Springer Netherlands, 2003. pp 171-219.
  9. Carias V, Alpizar F. Choice Experiments in Environmental Impact Assessment: The Toro 3 Hydroelectric Project and the Recreo Verde Tourist Center in Costa Rica. No. dp-11-04-efd. 2011.
  10. Javaidi N. Internalizing Externalities of Electricity Production: Willingness to pay to control Tehran’s power plants. MA: Economics. University of Tehran, Tehran; 2011. [In Persian]
  11. Jalili S P. Choice Experiment: A new approach to Valuing Environmental Good (Case Study: Hamadan’s Ganjnameh). MA: Economics. University of Tehran, Tehran; 2013. [In Persian]
  12. Bennett J, Blamey R. The choice modelling approach to environmental valuation. Edward Elgar Publishing, 2001. P 37.
  13. Ghorbani M, Firouzzaree A. Valuation of Different Characteristics of Air Pollution in Mashhad. Journal of Economic Research [Tahghighat-E-Eghtesadi], 2011; 44(4):215-241. [In Persian].