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Rubén Granado-Díaz, José A Gómez-Limón, Macario Rodríguez-Entrena, Anastasio J Villanueva, Spatial analysis of demand for sparsely located ecosystem services using alternative index approaches, European Review of Agricultural Economics, Volume 47, Issue 2, April 2020, Pages 752–784, https://doi.org/10.1093/erae/jbz036
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Abstract
This study focuses on the effects of spatial discounting and substitutes sites on the demand for ecosystem services (ES) provided by scattered agroecosystems. New ways of modelling these two effects are proposed, relying on area-based and density-based indices. Data from discrete choice experiments are used, based on a case study of Andalusian olive groves (southern Spain). The results show that model fit is significantly improved by the introduction of these spatial indices, with the best outcome found for the area-based index combined with the inverse of the distance. Results provide evidence of substantial spatial heterogeneity depending on the ES (carbon sequestration, soil conservation and biodiversity), indicating different economic jurisdictions.