In this paper the authors aim to clarify the role of environmental valuation in public policymaking through a case study of valuing the waterside along a river in an urban area. A brief history of river policies in Japan is first discussed. Then, in order to identify residents' demands concerning the waterside, a discrete choice model is set up. The model is then applied to a case study. Not only revealed preference data but also stated preference data are used in the case study. Finally, the limited role of the value of the waterside environment that is obtained from the model is shown.
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