features. A second utility relation links the probability of an alternative being chosen
to the utility of each alternative. That is, individuals are assumed to choose the
alternative yielding the highest utility. An econometric analysis is then conducted
using an ordinal logistic model in order to elicit the stakeholder’s preferences for
different platform designs. The functional forms can be found in Chen et al. (2015).
The utility function is then used to estimate welfare indicators (willingness to pay
(WTP) and willingness to accept (WTA)) based on the levels of attributes (Bennett
and Adamowicz 2001; Birol and Koundouri 2008). In our case the welfare indicators
tell the value of ecosystem services change affected by the platform.
4.3.2.2 Social Cost-Benefit Analysis (SCBA)
The social cost-benefit analysis (SCBA) is a technique that assesses the monetary
social costs and benefits of an investment project over a time period, in comparison
to a well-defined baseline alternative, in our case the status quo situation. In this way,
the social costs and benefits of a platform are evaluated and compared, and the longrun economic efficiency of implementing the project of platform is assessed. The
methodology pays close attention to both the financial and socio-economic assessments of the project. The financial assessment includes the estimation of financial
costs of the investment and the estimation of project development costs, operation
and maintenance costs as well as training costs. The socio-economic assessment
takes into account all the direct, indirect and induced economic benefits in terms of
regional output, income and employment (i.e. market goods), as well as the benefits
from positive externalities (i.e. non-market goods) on the environment (through the
valuation of the ecosystem services). A project is deemed to be profitable if total
social benefits exceed total social costs. Due to the project’s expected long-run
impacts on the local economy and ecology, its sustainability is to be examined by
using the SCBA. The net present value (NPV) or the social net present value (SNPV)
of the project is to be estimated using different discount rate schemes (Birol et al.
2010). The NPV/SNPV results reveal whether the net social benefits generated by
the investment project of MUOPs are positive and significant well into the future.
4.4 Data Collection and Description
4.4.1 Social Acceptance and Choice Experiment Survey
Survey designs, data collection process and data description are detailed in the
TROPOS report (Chen et al. 2015). Here we reiterate the data to brief the readers.
The survey for both social acceptance and choice experiment include a pilot and a
final survey. The pilot surveys were used to test the feasibility of the questionnaires
before the final full survey. Both the pilot and full surveys for the two were combined
together due to limited time and resource of the project. The pilot surveys were
conducted on Liuqiu Island between 31 August and 2 September 2014.
4 Social Acceptance and Socio-economic Effects of Multi-use Offshore. . .
69
to the utility of each alternative. That is, individuals are assumed to choose the
alternative yielding the highest utility. An econometric analysis is then conducted
using an ordinal logistic model in order to elicit the stakeholder’s preferences for
different platform designs. The functional forms can be found in Chen et al. (2015).
The utility function is then used to estimate welfare indicators (willingness to pay
(WTP) and willingness to accept (WTA)) based on the levels of attributes (Bennett
and Adamowicz 2001; Birol and Koundouri 2008). In our case the welfare indicators
tell the value of ecosystem services change affected by the platform.
4.3.2.2 Social Cost-Benefit Analysis (SCBA)
The social cost-benefit analysis (SCBA) is a technique that assesses the monetary
social costs and benefits of an investment project over a time period, in comparison
to a well-defined baseline alternative, in our case the status quo situation. In this way,
the social costs and benefits of a platform are evaluated and compared, and the longrun economic efficiency of implementing the project of platform is assessed. The
methodology pays close attention to both the financial and socio-economic assessments of the project. The financial assessment includes the estimation of financial
costs of the investment and the estimation of project development costs, operation
and maintenance costs as well as training costs. The socio-economic assessment
takes into account all the direct, indirect and induced economic benefits in terms of
regional output, income and employment (i.e. market goods), as well as the benefits
from positive externalities (i.e. non-market goods) on the environment (through the
valuation of the ecosystem services). A project is deemed to be profitable if total
social benefits exceed total social costs. Due to the project’s expected long-run
impacts on the local economy and ecology, its sustainability is to be examined by
using the SCBA. The net present value (NPV) or the social net present value (SNPV)
of the project is to be estimated using different discount rate schemes (Birol et al.
2010). The NPV/SNPV results reveal whether the net social benefits generated by
the investment project of MUOPs are positive and significant well into the future.
4.4 Data Collection and Description
4.4.1 Social Acceptance and Choice Experiment Survey
Survey designs, data collection process and data description are detailed in the
TROPOS report (Chen et al. 2015). Here we reiterate the data to brief the readers.
The survey for both social acceptance and choice experiment include a pilot and a
final survey. The pilot surveys were used to test the feasibility of the questionnaires
before the final full survey. Both the pilot and full surveys for the two were combined
together due to limited time and resource of the project. The pilot surveys were
conducted on Liuqiu Island between 31 August and 2 September 2014.
4 Social Acceptance and Socio-economic Effects of Multi-use Offshore. . .
69