Exploring Information and Embedding Effects on Willingness-to-Pay to Control the Invasive Red King Crab in Norway

Summary

Abstract Invasive species pose a challenging management issue, requiring prioritization of which species to target and the intensity of management needed to curb their spread. This paper uses data from a stated choice experiment to elicit the Norwegian population’s willingness-to-pay (WTP) for reducing the spread of the invasive Red King Crab (RKC) from the Barents Sea. This scenario highlights ongoing control and management challenges of this species in Norway. We analyze how WTP for managing the RKC changes when management is embedded within the broader context of managing other invasive species in Norway. Our findings indicate that reminding respondents about the focus on RKC leads to a downward shift in WTP. This shift occurs only for the reduced spread attribute, not for other environmental attributes, suggesting the reminder effectively reduces embedding. Our results are robust across model and utility function specifications. Failure to correct for embedding may result in over-valuation of the embedded good, impacting decisions on conservation or economic exploitation. Implementing an “embedding reminder” may be a cost-effective measure to mitigate embedding in similar studies.