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Abstract:The drive to increase renewable electricity production in many parts of Europe has led to an increasing concentration of new wind energy sites at sea. This results in a range of environmental impacts which should be taken into account in a benefit-cost analysis of such proposals. In this paper, we use choice modelling to investigate the relative gains and losses from siting new windfarms off the coast of Estonia, relative to the option of creating a new marine protected area. We find that, while respondents are generally opposed to converting marine shoals to conventional wind farms and prefer the establishment of marine protected areas instead, benefits from constructing ‗environmentally-friendly' wind farms -an alternative program which is also considered by the government -are not statistically different with respect to consumers' welfare to those associated with creating a new marine protected area. Methodologically, the paper makes a contribution by showing the ability of the latent class mixed logit model to represent both within-and between-class preference heterogeneity, and thus its power to provide a more sophisticated representation of preference heterogeneity than stand-alone latent class or mixed logit approaches. The paper is also presents the first use of the latent class mixed logit model in willingness-to-pay space for environmental goods.Keywords: discrete choice experiment, off-shore wind energy, marine protected areas, willingness to pay space, latent class mixed logit, renewable energy. -We analyse the trade-offs between wind energy production and the designation of marine protected areas in Estonia.-Discrete choice modelling is used to estimate the relative welfare effects of 3 design options in two locations.-A methodological enhancement to choice modelling is introduced, namely the latent class mixed logit model in willingness to pay space.-The model shows distinct preference heterogeneity both within and between latent classes of respondents.-On average, people prefer -eco‖ windfarms to conventional windfarms or marine protected areas.

Forestry as an important industry has both direct as well as indirect effects on the Estonian economy. It is therefore essential that it is sustainably managed so that it can continue to contribute to the economy in the future. The first aim of this article is to establish the situation regarding felling and regeneration in Estonia. As the available forestry statistics display discrepancies and lack consistency, it was as a necessary first step to gather information about and analyze the validity and reliability of the prime data to make the data sets useful for comparison over time and establish the current trends in Estonian forestry. However, with the help of interviews we are able to show that economic instability in Estonia brings with it increased logging rates and hinders investments into regeneration and maintenance. The problems are particularly pronounced in private forestry. Second, the article seeks to explain the socioeconomic reasons behind this situation. Economic problems among private owners, a liberal forestry policy, together with rapid land reform and weak enforcement of forestry legislation are some of the reasons that can explain the forestry trends in Estonia.