Procedia - Social and Behavioral Sciences 144 ( 2014 ) 378 – 391

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1877-0428 © 2014 Elsevier Ltd. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/3.0/).Peer-review under responsibility of the Scientific Committee of 5AEC2014.doi: 10.1016/j.sbspro.2014.07.307

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5th Asia Euro Conference 2014

Impacts of tourism on environmental attributes, environmental literacy and willingness to pay: A conceptual and theoretical review

Murugadas Ramdasa,b,*, Badaruddin Mohameda

aSchool of Housing, Building and Planning, Universiti Sains Malaysia, 11500, Penang, Malaysia bDepartment of Polytechnic Education, Ministry of Education Malaysia, 62100, Putrajaya, Malaysia

Abstract

The purpose of this paper is to review conceptually and theoretically on the interrelation between impacts of tourism towards environmental attributes of small islands and environmental literacy with willingness to pay. Firstly, the impacts of tourism on environmental attributes such coral reefs, water, fisheries and beaches are discussed briefly. The impacts of tourism towards environmental attributes range derives from tourism activities such as boating, snorkelling, diving and fishing. Improper and irresponsible behaviour of tourist is also believed to be a significant reason that contributes to detrimental effects on the environmental attributes. The different mindset of tourist derives from the different level of environmental literacy that they have. The concept environmental literacy that consists of not only knowledge on the environment and its issues but also includes disposition components of attitudes, sensitivity and motivation are discussed thoroughly. Intention to act or intended behaviour that is explored in this paper would be the concept of willingness to pay for the environmental attributes. The different use and non-values which is basis of the economic valuation of willingness to pay are explained. The two main techniques than can be used to capture use and non-use values of environmental attributes known as revealed and stated preference is also discussed. Choice Experiment is stated preference approach that is able estimate WTP by minimizing the biases presented by other approaches is reviewed. Two main theories are used in the concept of willingness to pay which is the theory of value by Lancaster (1966) and random utility theory by Thurstone (1927). The theory of reasoned action (TRA) is the theory used to explain in overall the relationship between knowledge, attitude and behavioural intentions and used to form a framework that relates environmental literacy and willingness to pay. © 2014 The Authors. Published by Elsevier Ltd. Selection and peer-review under responsibility of the Organizing Committee of Asia Euro Conference 2014.

Keywords : Environmental Literacy; Willingness to Pay

* Corresponding author. Tel.: +6-012-239-7916.

E-mail address: muru_rc@yahoo.com

© 2014 Elsevier Ltd. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/3.0/).Peer-review under responsibility of the Scientific Committee of 5AEC2014.

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1. Introduction

Small island tourism has become a very significant part of the tourism industry. Small island compromises islands which has size below 10,000 km2 with a population equivalent or less than half a million It has a variety of activities that can afford to tourist ranging from beach tourism, diving, recreational boating, cruises, snorkelling, recreational and deep sea fishing. (Farid and Setiawan 2013; Hall, 2001; Voon 2000).

The importance of island tourism is overwhelming that it is considered to extent that it is considered to the leading contributor in generating income of certain country’s economy (Sobhee, 2008; Gore, 2007; UNEP, 2003). The fixed physical assets of the island such as fine beaches, moderate climate, tropical forests, coral reefs and colourful fish species offers as an escapism retreat from the stresses of modern life (Salim and Mohd Tahir, 2012).

It is believed that countries which are blessed with these natural assets may stand to offer job and business opportunities to the local community. (Ismail and Turner, 2008; Lee, 2010; Jaafar and Maideen, 2012; Mohd Shariff and Tahir, 2003). Another key aspect of the island that allows it to play important to the tourism industry is its isolation, distinctiveness and manageability characteristics (Salim and Mohd Tahir, 2012).

Tourism in the islands has proven to be very much of importance to the wellbeing of country’s economic and social aspects. However, is has become increasingly difficult to ignore the negative consequences that are brought out by island tourism especially towards the environmental attributes (Mohamed et al, 2000; Fisher et al, 2008; Gossling, 2002; Hall, 2001; Mohd Shariff and Tahir, 2003; Teh and Cabanban, 2007).

This paper will outline that the impacts on environmental attributes is not only derives from tourist activities conducted in the island but also due to the irresponsible behaviours of tourists. (Briasoullis, 2002; Hall, 2001; Reopanichkul, 2009). However, different behaviours of tourists towards the environment derive from the different levels of knowledge and attitude that they acquire (Aminrad et al, 2010; Hollweg et al, 2011, Ireland, 2013).

Environmental knowledge and attitude are components of a wider concept known as environmental literacy. Environmental literacy does not only refer to knowledge on environmental issues also the ability to synthesize holistically by the personal learning process. This learning process is embedded by socioeconomic, political, cultural, historical and ecological factors (Hares et al, 2004; Schneider, 2007). The components of environmental literacy that will be explored in this paper include of knowledge on physical and ecological systems, knowledge on environmental issues, attitudes and concern, sensitivity and motivation.

The different components of environmental literacy is believed to have a positive relationship with pro-environmental or environmentally significant behaviors (Biga, 2006; Chan, 2009; Gatersleben et al, 2002;Martinangeli and Zoli, 2013; Melgar et al, 2013; Stern, 2000; Tapia-Fonllem, 2013; Urban and Zvenirova, 2009). This paper will explore a pro-environmental behaviour in the form of known as willingness to pay.

Willingness to pay (WTP) for is an economical method applied to calculate the amount that stakeholders are willing to pay in monetary amount to maintain the changes in quantity and rehabilitation in the quality of environmental attributes. (Baysan, 2001, Budeanu, 2007; Gosken et al, 2002; Ku and Chen, 2013; Nowacki 2013; Sharpley, 2010; Stern, 2000 Togridou et al, 2006,; Uyarra, 2005, Wattage, 2002).

In conceptualizing WTP, the paper will review the different values involved in economic valuation. The main two techniques that can used to obtain the values of WTP which will compromise of revealed and stated preference will be discussed. Choice Experiment (CE) which stands out as a bias minimizing alternative in revealing an individual’s WTP will be reviewed. The Theory of Value (Lancaster, 1966) and Random Utility Theory (Thurstone, 1927) which form the basis for WTP is briefly discussed.

The next section of the paper will review the theories that will inter-relate the components of environmental literacy with the pro-environmental behaviour of WTP. Theory of Reasoned Action (Fishbein and Azjen, 1975) is the main theory used to forms the relationship between the two concepts. Theory of Wilderness Behaviour and Integrative Model of Behaviour Prediction which is an adaptive form Theory of Reasoned Action used to explain the remaining relationships between the components of environmental literacy and willingness to pay. Finally, this paper will reveal a framework that inter-relates the different components of environmental literacy and willingness to pay.

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2. Impacts of Tourism on Environmental Attributes of Small Islands

Environmental attributes which are related to tourism in the islands include coral reefs, beach, water, vegetation, wildlife and fisheries (Farid et al, 2013; Uyarra et al, 2005; Teh and Cabanban, 2007). Coral reefs are one of the attributes that has received critical attention as facing visible effects of tourism activities (Briassoulis, 2002; Hall; 2001; Gladstone et al, 2012 Needham, 2008; Nuva R et al, 2009).

Tourism activities are able to affect coral reefs either directly or indirectly (Reopanichkul, 2009). Direct effect implies to the intrusion to the coral community through accidental disturbance. This derives from coral breaking, boats colliding with reefs and damage from anchors. Snorkelling, diving and reef walking are other tourism activities that are believed to have a direct effect on coral breaking (Hall, 2001; Needham, 2008; Gladstone et al, 2012). The improper and uncontrolled manner in conducting these activities can lead to major damage on coral reefs.

The indirect effect of tourism on coral reef rises from the alteration of the water quality surrounding the reefs through pollution. Pollution of the water quality is usually linked to improper behaviour of tourist, overcrowding of visitors, tourism infrastructure development and poor waste management (Briasoullis, 2002; Hall, 2001; Reopanichkul, 2009).

Tourist behaviour towards the impairment of coral reef in the island is believed to exceed other factors (Gladstone et al, 2012). Behaviours such as littering, reef walking at low tide, excessive water use and reef picking are some of the negative behaviours of tourist that can seriously damage coral reefs (Briasoullis, 2002; Hall, 2001).

Water is another attribute of the island that receives an impact from tourism. An increase in the number of tourists equates to the increase in wastewater disposal from hotels and other buildings. Improper treatment of these wastewaters could result it being discharged the sea. This would lead to devastating effects to the beach waters, groundwater, abundance of fishes and water resources (Reopanichkul, 2009; Praveena et al, 2010).

Recreational boating which can cause oil spills and release of heavy metals such as mercury and lead could degrade the water quality of islands. The effect is not only to water itself but the entire ecosystem surrounding the water. The growth of algae through the process of eutrophication could have a significant effect of the surrounding beach and coral reef communities. Tourists on board recreational boating and cruises also have a natural tendency of solid waste disposal to the water which can lead to devastating effects on water. (Davies and Cahill, 2000)

Besides recreational boating, construction and transportation are actively conducted around the island area to support the increasing number of tourists. Runoff and waste deriving from these activities usually directed to waters due to improper discard. This could result to the increase in turbidity and suspended solids which directly affects the clarity of the water (Davies & Cahill, 2000; Reopanichkul, 2009; Saenger, 1990).

Turbidity refers are cloudiness in the water formed by silt, clay, organic, inorganic, chemical, plankton and other microorganism which scatters the entry of direct sunlight to the sea. Suspended solids are mineral and organic particles transported in the water in the form of silt and clay. Turbidity and suspended solids could significant effect on the decrease of production and abundance of plant materials, fish and fish food organism (Bash & Bolton, 2001).

Beach compromises another attribute of the island that receives significant impacts from tourism. Silva and Ghilardi-Lopez (2012) has identified the one impact of tourism to the beaches, especially those caused by tourist as improper disposal of solid waste that attracts animals, fungi, bacteria which leaves an uncomfortable smell in the surrounding areas. Poor solid waste management and high residential density further escalates the effect of solid waste on beaches (Davies and Cahill, 2000; Dibajnia et al, 2012).

The use of off-road vehicle activities by tourists on beaches has also been identified to have effects on the beach environment. Substances such oil and hydrocarbon released from these activities could lead to serious damage to the beach. Off-road vehicles could also have as vast effects on the fauna, vegetation and sensitive areas surrounding the beach (McLachlan et al, 2013; Saenger, 1990; Silva and Ghilardi-Lopez, 2012).

Apart from the impact mentioned, impacts of tourism on the beaches also compromise graffiti and vandalism on beach rocks, the intrusion of sensitive areas are such mangrove, illegal and excessive fishing. Some other obvious impacts include improper feeding of animal which leads to them being poisoned to their death and the collection of corals, shellfish and other wildlife which could lead to an imbalance in the ecosystem (Davies and Cahill, 2000; McLachlan et al, 2013; Silva and Ghilardi, 2012, Vousdoukas et al, 2009).

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Fisheries stand an attribute in islands that is also affected by tourism whether directly or indirectly. Abundance of fisheries is directly decreased by illegal or fishing activities in non-reserved areas. The indirect effect arises irresponsible of solid waste into the waters and pollution arising from recreational boating. The effects have the tendency to reduce dissolved oxygen which would reduce survival chances of fisheries (Byron et al, 2011, Inglis et al, 2000; de Jonge et al, 2012;, Silva and Ghilardi, 2012).

Tourism is clearly bringing visible impacts to the environmental attributes either directly and through industries that support the industry It's believed that tourists are have environmental knowledge and awareness with concerns towards the environment have displayed a more responsible and pro-environmental behaviors (Deidrich et al, 2011; Deng and Bender, 2007; Ku and Chen, 2013; Jaafar and Maideen, 2012; Mapjabil, 2012 Voon, 2000).

3. The Concept of Environmental Literacy

The ever changing conditions of the environment as a result of human activities requires the upgrading the society to be environmentally knowledgeable and committed. Society with environmental literacy would be able to behave in a respectable and responsible manner towards the environment. Challenges in an environment that emerge culturally, politically and socially will be solvable for an environmentally literate society (Hares et al; 2004; Hollweg et al, 2011; Erdogan et al, 2009)

The history of environmental literacy began when in the early 1970’s UNESCO in the Stokholm Declaration 1972, decided in pioneering a formal form of environmental education. A clearly defined environmental education was believed to lead the way to a generation that would be aware and concerned towards the environment. This followed with a series of conference and summits that gave a more formal concern the environmental education (Hollweg, 2011).

The Belgrade Charter (1975), was the outcome of 10 days regional workshop that brought out a framework and guideline principles of global environmental education. The charter included the objectives, goals and also the target audience for environmental education programs.

The Tbilisi Declaration (1977) which followed the Belgrade Charter outlined a more comprehensive document on the goals, objectives, roles, characteristics, framework and guidelines of environmental education. Identification of categories of the environmental education which forms the basis environmental literacy was the most important contribution of the declaration. The categories identified in the Tbilisi Declaration include awareness, knowledge, skills, attitude and participation.

The Copernicus Charter (1988) and Halifax Declaration (1991) extended the work on environmental education which highlighted the importance of teaching and practicing environmental education in universities. Agenda 21 (1992), directly questioned the ability of universities to produce graduates who are environmentally literate. The Swansea Declaration (1993) and the Ubuntu Declaration (2002) are examples of more recent emphasis on the importance of environmental education.

3.1. Components of Enviromnental Literacy Assessment

The components of environmental literacy assessment have been through numerous evolutions with the changing condition of impact towards the environment. These changes do not only require the literacy of environmental knowledge but also attitudes, motivation, awareness and concern that will lead the way for more environmentally responsible behaviours (Hollweg et al, 2011, Hsu & Roth, 1998, Szell and Hallett, 2013).

Moseley (2000) divided the components of environmental literacy into three main levels which includes nominal, functional and operational literacy. Nominal cluster only looks at basic knowledge of the environment without much of the affective component of awareness and concern. Functional level is where the environmental knowledge is used for particular actions on the environmental issues and also communicated to third persons.

The main challenge in instilling environmental literacy even in the field tourism involves the third level which is operational literacy (Price, 2003). Operational literacy involves where issues of the environment are constantly perceived and gathered which lead to position taking and actions that works towards building and sustaining environmental knowledge and skills (Stables and Bishop, 2001; Roth, 2002).

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More recent literatures that have divided environment literacy in four important domains that assume nominal, functional and operational level of environmental literacy. These domains include knowledge, cognitive and affective dispositions (attitudes), competencies (skills) and environmentally responsible behaviour. (Hollweg et al, 2011; Ireland, 2013; McBeth et al, 2008 ; Moody and Hartel, 2007; Negev et al, 2008).

However, previous researchers who studied willingness to pay in the tourism sector has only concentrated on components of the knowledge and disposition domain of environmental literacy (Hegazy and Mesbah, 2002; Szell and Hallett, 2013; Togridou, 2006; Wang and Jia; 2012). The table 1 below shows a summary of the components that form the knowledge as well as the cognitive and affective disposition domain (Ireland, 2013).

Table 1. Domains and Compenents of Environmental Literacy

Domains Knowledge Cognitive and Affective Dispositions Components Physical and Ecological

Foundations Socio-Political and Cultural

Systems Environmental Issues Alternative/Multiple Solution to

Environmental Issues Citizen Participation and Action

Strategies

Sensitivity Attitudes and concern Personal Responsibility Locus of Control/Efficiacy Motivation and Intention to act

An assessment that was conducted to assess the national environmental literacy in America (Mcbeth et al, 2008)

has given emphasis and scores to only certain components of knowledge and disposition. Components of the knowledge domain that were included are physical and ecological system as well as environmental issues. Sensitivity, attitudes and concern with the motivation and intention to act were the only components that were included from the disposition domain (Hollweg et al, 2011).

3.2. Environmental Knowledge

Roth (1992) who is a pioneer in the field of environmental literacy defined environmental knowledge as the combination of all the cognitive understanding known in the environment and that the problems associated with it (Varisli, 2009). Hamalainen (2012) further stated that environmental knowledge should be a combination of abstract and concrete aspect on general knowledge of the natural environment and ecosystem which includes the understanding of its relationships, facts and concepts.

Abstract knowledge refers to the knowledge on issues of environment where the causes and the solution to a problem are identified. Concrete knowledge is more related to the behavioural knowledge which looks at its benefits and actions. Actions can be divided into physical and persuasive actions. Physical actions where an individual commits to more environmentally conscious lifestyle such as recycling and picking up trash. Persuasive actions involve directing another to commit to environmental conservation and protection (George, 2007).

Environmental knowledge is important because it helps the acquisition of the basic understanding of the environment and the problems associated with it. It will also help individuals to gain a variety of experience besides building awareness of their surroundings and positive attitude in individual towards the environment (Daniel et al, 2007; Harun et al, 2011; Lee et al, 2013). Environmental knowledge also helps the evoke concern and attention among individual that create the willingness to act towards environmental problems (Gopal, 2004; Daudi, 2008). 3.2.1 Knowledge of Physical and Ecological Systems

Knowledge of physical and ecological compromise of basic understanding of the biosphere which includes air,

water and land which serve as a life support to all living organisms for survival and hospitality. The concept on how organisms and population interact and interrelate is also included in the content.

Principle concepts of natural and man-made ecological systems which includes biogeochemical cycles, production and energy flow, food chain, food web and the interaction of these principles with society also forms the content (Berkowitz et al, 2004; Loubser et al, 2001).

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3.2.2 Knowledge on environmental issues

Environmental issues arise when human activities bring impact exceeding the limits of the physical environment

and is harmful to the species and population of the surrounding ecosystem. Environmental issues do not arise individually but rather a combination scientific physical, personal, social and political context.

Environmental issues include interrelationship between the environment and the society, environmental effects of technological and economic growth, air and water pollution, greenhouse effect, global warming and other environmental problems. It's important to recognize the causes and effect of these environmental issues which will enable the decision according to the context (Aminrad et al, 2010; Hollweg et al, 2011, Ireland, 2013).

3.3. Cognitive and Affective Disposition

Environmental disposition refers to an inclination of feelings, values and concerns that would motivate them towards environmental protection and conservation. Environment disposition also helps an individual to make decisions on solving problems related to the environment. (Daudi, 2008, Hollweg et al, 2011). Components of environmental disposition that have a significant degree of emphasis consist of environmental sensitivity, attitudes and concern as well as motivation and intention to act.

3.3.1 Environmental Sensitivity

Environmental sensitivity refers a collection of cognitive and affective attributes combined in an individual

gained through a variety of internal (needs, abilities, interest and emotion) and external experiences. These experiences will help the view the environmental problem and issues surrounding with an empathic notion (Lee et al, 2013; Varisli, 2009).

3.3.2 Attitudes and Concern

Environmental attitudes consist of complex perceptions formed by the values and beliefs of an individual which brings out the verbal commitment, actual commitment, motivation and intention to act in participating actively towards environmental protection and improvement (Aminrad et al, 2010; Harun et al, 2011; Varisli, 2009).

Environmental attitude can also define as a combination of personal experiences, cultural norms and values which derives as an opinion towards on giving environmental issue (Daudi, 2008). Environmental attitudes derive from three dimensions which consist of environmental worlview, concern and commitment. Environmental worldwide is environmental values that in the most basic and general form (Aminrad et al, 2010).

Environmental concern refers to the cognitive (insight to the problem) and emotional response (feeling of fear, anger etc.) by an individual towards concrete and abstract environmental problems. Concrete environmental problems are visible and local environmental degradation such as water and air pollution that has an immediate and direct effect to individuals. Abstract environmental problems are less visible and are more global problems which do not conjure immediate threat to individuals such as ozone depletion and global warming (Gosken et al, 2002; Liebe et al, 2010).

3.3.3 Motivation and Intention To Act

Values and beliefs of an individual towards an environmental issue will bring out the motivation that could lead to the intention or willingness to act. Intention to act could also be seen as technical and acceptable the term in describing an action or decision making by individuals (Hollweg et al; 2011).

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4. Concept of Willingness To Pay (WTP)

Environmental attributes in islands display the characteristics of a public good. Public goods are goods offered to consumer in a non-excludable and non-rival manner. This notates that environmental attributes of the island would not be excluded to any tourist and the benefits deriving from these attributes would be equally enjoyed by tourists (Liebe et al, 2011, Wattage, 2002).

There is a consensus among researchers that the quality of environmental attributes is classified as a public good mainly for the reason that it is available without any restriction to the tourists. (Briassoulis, 2002; Hardy & Beeton, 2010; Nuva R et al, 2009; Pazienza, 2008; Tanrivermis, 1998; Wang, 2009; Wattage, 2002).

Environmental attributes as a public good will create the problem of free riders. Free riders exists when tourists utilize these environmental attributes for their satisfaction, but unwilling to compensate for the negative externalities deriving from their consumption. (Liebe et al, 2011, Weerakon et al, 2006; Rosenberger et al, 2004). Negative externalities are bad effects are human activities which endows degradation on the environment. However, compensation for externalities would prove to be indefinite due to the lack of property rights (Hyland, 2007; Rosenberger et al, 2004, Song et al, 2012).

Property right or moral right is usually difficult to be implemented in the case of goods which have a non-excludability characteristic such as the environment (SEPA, 2006). The absence of property right still allows the calculation of compensation in the economic values. Economic values in monetary term for an alteration in the current situation of an environment is known as Willingness to Pay

Willingness to Pay (WTP) basically can be perceived as an amount or cost that an individual intends to commit for a designated improvement or compensation. WTP can also be considered a measurement that indicates the tendency to act in monetary terms by an individual for the intended change or quality improvement. WTP can be a useful tool in evaluating resources such as the environment which do not have a specific commercial or market value. WTP is considered a constantly evolving measurement as it may change with the accumulation of new information (Corrigan et al, 2003; Gosken et al, 2002 Nowacki 2013).

They are two dimensions in which the WTP for the environment could be interpreted. The first dimension involves the situation where the property right is absent although there is a need for improvement of the environment. Hence, tourists as the consumers should be willing to give up a certain amount of their income to improve the environment.

The second situation involved the situation where the tourist is obliged as consumers commit a certain amount of money that prevent further loss or degradation of the environment (Mmopelwa, 2007; SEPA, 2006). WTP could be obtained more effectively once the economic values of the environment are clearly outlined. Economic value of environment could be classified to two main components which consist of use and non-use values (Ahmad, 2009; Farr et al, 2012; Togridou et al, 2005).

4.1. Economic Valuation of the Environmental Attributes

Use values can divided into two values which consist of direct and non-direct use values. Direct use value or consumptive use values refer to goods deriving from the ecosystem which is directly physically utilized by humans and involves extracting features such as capturing fisheries from the sea. Indirect use or non-consumptive-values refer goods which may not be directly consumed but still gives benefits to users. However, the benefits enjoyed by the user would indirectly have negative effects on the ecological function. For example, divers who enjoy the view of the rich marine life underwater may have adverse to its ecological functions (Dosi, 2000, National Oceans Office, 2001).

Non-use values can be defined as the urge and intention of users and non-users of the environment to preserve it in the current state for the benefit of the future generation (Dharmaratne et al, 2000). Non-use values are divided into three main components which are bequest, existence and vicarious values. Bequest values encompass the values or desire to preserve the existing environment for the benefit and use of the future generation.

Existence value on the other hand refers to moral or philosophical reasoning that derives from the mere knowledge of realising the existence of species, habitat and ecosystems for the future generation. Vicarious value is

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achieved from the knowledge of realising that the benefits of a natural environment are being enjoyed by others (Jantzen, 2006; Mudgal et al, 2011; National Oceans Office, 2011). Option and quasi option values have also been agreed by many researchers to be as a part of the economic value of the environment and falls neither use nor non-use value (Dosi, 2000). Option values relate to the monetary value that is willing to forgone by individuals in order preserve the current benefit from the environment.

This benefit may be enjoyed by the individual itself in the future or by the future generation. Option value encounters the uncertainties faced the individuals on the preservation of the resource in the future. Quasi option value refers to welfare derived from the possibility of obtaining information that would be valuable to avoid irreversible environmental damages (Ahmad, 2009; Jantzen, 2006; Mackin et al, 2012).

Numerous studies that have captured the use values and non-use value of environmental attributes by using two main techniques known as revealed preference and stated preference (Ahmad, 2009; Beharry-Borg and Scarpa, 2010; Brau et al, 2006; Dumitras et al, 2011; Figini et al, 2007; Michaud and Llerena, 2008; Schep et al, 2012; Rawi, 2012; Shoka, 2006; Wehrli, 2007).

Revealed preference (RP) technique is a market-based method that identifies paths that can utilized to value non-market goods based on existing behaviours in actual market of a related good that act as a complementary the good valued. (Mourato, 2006; Pearce et al, 2002; Vega and Aplizar, 2011).

The RP method requires a strong association between the market (house price) and environmental factors (level of noise nuisance) surrounding that market in order the related association to be quantified (Farr, 2013; Pearce et al, 2002 Mourato, 2006). Some of the methods that can be applied using RP technique includes hedonic pricing, travel cost method and averting behaviour approach (Ahmad, 2009).

Stated preference the other hand is techniques and approaches that can estimate the use and non-use values of goods and services through a constructed market. SP extracts values related to willingness to pay either directly or indirectly using surveys. This survey is used probands or pre-defined range of choices in the form of ranking or ratings to obtain responses. (Breidert, 2005; Pearce et al, 2002; Vega and Aplizar, 2011).

Most researchers prefer to use SP approach compared to RP approach due its advantages (Ahmad, 2009; Beharry-Borg and Scarpa, 2010; Brau et al, 2006; Dumitras et al, 2011; Figini et al, 2007; Hearne and Bianebe, 2010; Michaud and Llerena, 2008; Schep et al, 2012; Rawi, 2012; Shoka, 2006;). SP can be obtained using a hypothetical market where else RP needs an actual market to extract its values.

SP is also able to provide choices for an extended range of attributes compared to RP. SP has a different preference indicator that can be used which includes ranking, rating and choice intension compared to RP which only uses choice. SP also needs a smaller sample size compared to RP and is also able to extract new alternatives. SP also is more accurate, complete, can reflect different states of the environment and able to produce trade-off between the attributes which minimizes bias responses and misleading inferences. (Boxall et al, 1996; Farr et al, 2013; Hearne and Bianebe, 2010; Mourato, 2006; Shoka, 2006)

Choice experiment (CE) offers as a better alternative option in choice modelling approach in estimating WTP by omitting the biases present in CVM. The CE method utilizes hypothetical market that allows individuals to respond to the pre-defined combination of systematic and diverse specific level of attributes. The attributes represent the benefit gained for their behaviour in estimating the value of good according to their preference of the alternatives offered to them (Brau et al, 2006; Dumitras et al, 2011; Figini et al, 2007; Michaud and Llerena, 2008).

CE is believed to minimize the biased responses present in CVM which could lead to misleading inferences. CE offers a more complete array of features and description of different attributes which reflect the different conditions of the environment. CE is also perceived as a more accurate and dominant approach in estimating the WTP of multi-attribute resources of the environment (Beharry-Borg and Scarpa, 2010; Hearne and Bianebe, 2010).

CE also allows the extraction of value of individual attributes of the environment produced in the form of a multi-dimensional package. In addition, CE is able to calculate the differential value that each attribute bring to overall individual consumption. CE also allows the measurement of benefits transferred if environmental goods were separated into attributes that could be measured along with socioeconomic factors (Figini et al, 2007; Hanley et al, 2000).

CE provides respondents a variety of combinations to express their preference rather than being faced with mandatory and specific response such as rating, ranking or choice alternatives. CE also differ from other valuation approach due provision of status quo alternative. Status quo or do-nothing allows the results to be analysed in

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economical welfare terms and provides the opportunity of making a more reasonable choice. (Hearne and Bianebe, 2010; Mourato, 2006; Shoka, 2006).

There are four important steps which are included in designing a CE (Vega and Aplizar, 2011). The first step involves the identification, defining and determining level to be assigned to attributes chosen for the experiment. The important characteristics that influence the decision making should also be identified. The list and level of the attributes are constructed using a combination of intensive exploration of literature added with knowledge and experience on the research matter.

The second step involves the process of creating the experiment design where a suitable combination of attributes and level should be established and grouped into different sets of choice. A factorial design is then implemented the experiment using the sets of choice. The complete factorial design usually involves combination 4 attributes with 2 levels. The next step involves the process deciding the method of conducting the experiment and construction of the questionnaire. The final step involves the selection of suitable sample using a proper sampling to conduct the experiment (Mourato, 2006; Yacob and Radam, 2008).

4.2. Theoretical Implication for Willingness to Pay

The use of a set of choices to extract information on the consumer utility function coincides with the theory of value by Lancaster (1966). In this theory, a good should not be valued with a single, but rather comprises of different combination of characteristics (Yacob et al 2009). Lancaster (1966) believed that certain characteristics are usually shared by different goods. Different characteristics which form a good have a better potential in maximizing the utility of consumers.

The application of sets choices with different combination of attributes assigned to different levels also aligns with the random utility theory (Adams et al, 2011; Beharry-Borg and Scarpa, 2010; Dumitras et al, 2011; Figini et al, 2007; Lee et al, 2010; Vega and Alpizar, 2011; Yacob and Radam; 2008;). Random utility theory which was first introduced by Thurstone (1927) was used as a solution in eliciting information regarding the maximization of the consumer’s utility which applies a set of choices (Brau et al, 2006).

5. Theoretical Framework For the Concept of Environmental Literacy and Willingness to Pay

As reviewed in this paper, the willingness to pay for the conservation of the environmental attributes of the tourist represents their behavioural intention. The variables that would influence this behavioural intention would be the knowledge, attitude and motivation of the tourist. In reference to these variables, theorized behaviour change model and theory of reasoned would be utilized in this theory.

Fig1. (Theorized) Behaviour Change Mode

Figure 1 shows the flow of (theorized) behaviour change model. In this model, it is proposed that the level of knowledge will influence the awareness or attitude of an individual will lead to responsible actions. In the context of environmental education, an individual with increased knowledge on the environment and its issues will lead to an increased awareness and positive towards the environment.

This eventually will lead to responsible action in protecting and conserving the environment. However, deeper studies into environmental behaviour suggests and that behaviour towards the environment would not be validly represented by a linear relationship. However, it is the basis of providing the relationship between knowledge and attitude (Hungerford and Volk, 1990).

The theory of reasoned action would be a more valid theory that would explain the relationship between knowledge, attitude and behavioural intention. Theory of reasoned action states that a person’s decision to engage in a behaviour or not is an outcome of their evaluation towards their behaviour and actions is not motivated by excessive desires and unconscious motives (Ekman, 2012).

Knowledge Awareness and Attitudes

Actions

387 Murugadas Ramdas and Badaruddin Mohamed / Procedia - Social and Behavioral Sciences 144 ( 2014 ) 378 – 391

“Reasoned” in the theory refers to the concept that if people believe that performing a behaviour bring out good things to them, they would be strongly motivated to perform the actual behaviour and vice versa if the behaviour brings out bad thing to them (Yzer, 2008). Theory of reasoned action is a very useful theory to predict voluntary behaviours (Pouta, 2003).

There are two main dimensions according to the Theory of Reasoned Action that predicts behaviour using behavioural intention which are attitudes towards the behaviour and subjective norm (Ekman, 2012). Attitude in the theory refers to the extent of approving or non approving of a behaviour according to their evaluation. Personal beliefs play an important part in the evaluation of the behaviour (Yzer, 2008).

Subjective norm refers to a person’s perception whether the society closely related to them think will favour or not in the person conducting a target behaviour. The dimension that has a direct effect towards subjective norm is the motivation to comply towards a behaviour (Pouta, 2003). Attitude and subjective norm are not weighted equally in predicting a behaviour. Attitudes carries more weight and subjective norm carries little weight at all in predicting a behaviour (Ekman, 2012).

The theory of wilderness behaviour which adapted the theory of reasoned action assumes that environmental knowledge influences attitude which will consequently enhance the behavioural intention (Md Taff et al, 2010). Kaiser et al (1999) also applying the theory of reasoned action concluded that knowledge also directly influences behavioural intention besides attitude.

An integrative model of behavioural prediction which also applied the theory of reasoned action described demographic as background variables directly influence all the other variables and also the behavioural intention (Yzer, 2008). Figure 2 shows the theoretical framework that links the concepts reviewed in the paper:-

Fig 2. Theoretical Framework for Environmental Literacy and Willingness to Pay

Theory of reasoned action is the main theory that is applied to the framework of the study showed in Figure 2. Willingness to pay represents the intention behaviour that is measured which will be a projection of the actual behaviour. Environmental knowledge will affect the attitude of the tourist and also affects willingness to pay directly according to the Theory of Wilderness Behaviour.

The attitude dimension of the theory represented by the attitudes and concern as well as sensitivity. Sensitivity and attitude could be replaced by each other as they share similar characteristics (Lee et al, 2013). However, in the assessment of environmental literacy, sensitivity and attitudes are evaluated separately (Hollweg et al, 2011; Ireland, 2013). Subjective norm dimension of the theory of reasoned action is represented by motivation. Demographic variables consisting of age, income and education effect all the other variable and also willingness to pay in accordance with the integrative model of behaviour prediction.

Environmental Knowledge - Knowledge of Physical and Ecological

Systems - Knowledge on environmental issues

Demographic Variables - Age - Income - Education

Subjective Norm

- Motivation

- Attitudes and Concern - Sensitivity

Behavioural Intention Willingness to pay

388 Murugadas Ramdas and Badaruddin Mohamed / Procedia - Social and Behavioral Sciences 144 ( 2014 ) 378 – 391

6. Conclusion.

This paper has brought out reviews to understand further the relationship between environmental literacy with willingness to pay for environmental attributes. The will be useful in giving an idea of what level willingness to pay that can be imposed on for environmental conservation of the attributes. It is believed that the application of WTP is also able to alter the behaviour of tourist towards environmental attributes protection and conservation. The value of WTP refers not only to the financial values to enjoy the current benefits of the destination but also preserving it for future generation (Baysan, 2001, Budeanu, 2007; Gosken et al, 2002; Ku and Chen, 2013; Nowacki 2013; Sharpley, 2010; Stern, 2000 Togridou et al, 2006,; Uyarra, 2005, Wattage, 2002).

This paper has also discussed in depth the concept of environmental literacy which is part of environmental education. This concept is important in enhancing environmentally significant behaviour such as willingness to pay. Environmental education should be included formally into education systems of a country so that the citizens as tourists would display environmentally responsible behaviour (Blessing,2012; Ildar,2008); . The display of environmentally responsible behaviour will enable to minimize the impacts on environmental attributes (Lavaga, 2004; Martinangeli, 2013; Stern, 2000).

Acknowledgements

This project is made possible through research grants obtained from the Ministry of Education, Malaysia [LRGS grant no: JPT.S(BPKI)2000/09/01/015Jld.4(67)], as well as Tourism Research Cluster Grant of USM.

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