SABIIA - Sistema Aberto e Integrado de Informação em Agricultura (Sabiia)

We challenge the assumption of i.i.d random utility across alternatives embedded in typical applications of logit models to dichotomous choice contingent valuation data. Using a Gumbel mixed distribution which nests a number of traditional models, we show that the logistic distribution is not a suitable distribution for contingent valuation analysis.

Temporal Insensitivity of Willingness to Pay: How do they evaluate in CVM?

Palavras-chave: Research Methods/ Statistical Methods.

Ano: 2005

URL: http://purl.umn.edu/19138

In addition to scope and scale embedding effects, temporal insensitivity of willingness to pay, also known as temporal embedding effect, has been a well known anomaly in eliciting willingness to pay for environmental quality change, especially over time. Stevens et al. (1997) defines two types of temporal embedding effects: strong insensitivity and weak insensitivity to payment schedule. This paper proposes an alternative definition of the temporal insensitivity. Temporal insensitivity implies that a subject in the survey responds consistently to value elicitation questions regardless of payment schemes. The sequential test tests the temporal insensitivity using the oyster reef restoration programs in Chesapeake Bay. Test results show that willingness to...

Inconsistent responses in the dichotomous choice contingent valuation with follow-up questions

Palavras-chave: Temporal insensitivity of willingness to pay; Temporal embedding effect; Implicit discount rate; Sequential test; Demand and Price Analysis.

Ano: 2007

URL: http://purl.umn.edu/9972

Kang, Heechan; Haab, Timothy C..

This essay develops a new method to diagnose inconsistency in dichotomous choice contingent valuation with follow-up questions: in particular, downward bias in the mean WTP. It is shown that the previous methods aimed to explain this inconsistency in responses have ignored statistical inconsistency: non-perfect correlation between the initial and follow-up responses and thus have provided wrong predictions to explain respondents' inconsistency pattern. In addition, from an application of our method, it has been proven that one model can not encompass all other possible inconsistency patterns in responses. Test results show that the behavioral inconsistency patterns are different both within and between data sets

THE VALUE OF AGRICULTURAL ECONOMICS EXTENSION PROGRAMMING: AN APPLICATION OF CONTINGENT VALUATION

Palavras-chave: Research Methods/ Statistical Methods.

Ano: 2006

URL: http://purl.umn.edu/21394

Roe, Brian E.; Haab, Timothy C.; Sohngen, Brent.

We use the contingent valuation method to estimate participant willingness to pay for agricultural economics extension programming. The data, collected as part of standard evaluation forms for the Ohio State University's 2001 Agricultural Outlook and Policy program series, and subsequent analysis suggest participant benefits exceeded departmental costs of conducting the program (benefit-cost ratios of 1.07 under conservative assumptions and 1.74 under moderate assumptions). We also use the data to explore the revenue generation potential from alternative program pricing and discuss the potential for developing differentiated programs to reach distinct audience segments. Additional research necessary before implementing alternative pricing or program...

Common Pool Resources and Social Norms: Internal cost & Less than Full Compliance - Fishery example

Palavras-chave: Teaching/Communication/Extension/Profession.

Ano: 2002

URL: http://purl.umn.edu/19861

Kang, Heechan; Haab, Timothy C..

We develop a theoretical model that is capable of explaining the existence of sustainable common pool resource equilibria in the absence of external regulation. We combine ideas from the literature on social norms in an iterative game theory framework to establish the existence of multiple sustainable common pool equilibria. Summary: Consider a highly stylized common pool resource (CPR) allocation problem where individual agents have the opportunity to comply or defect from some benchmark behavior. For example, a recreational boater can choose to dispose of trash overboard or haul the trash to shore, or perhaps a polluting firm can choose to meet or exceed a governmental standard for emissions. Traditional neo-classical models of common pool...

The Welfare Effects of Pfiesteria-Related Fish Kills: A Contingent Behavior Analysis of Seafood Consumers

Palavras-chave: Resource /Energy Economics and Policy.

Ano: 2005

URL: http://purl.umn.edu/19220

Parsons, George R.; Morgan, Ash; Whitehead, John C.; Haab, Timothy C..

We use contingent behavior analysis to study the effects of pfiesteria-related fish kills on the demand for seafood in the Mid-Atlantic region. We estimate a set of demand difference models based on individual responses to questions about seafood consumption in the presence of fish kills and with different amounts of information provided about health risks. We use a random-effects Tobit model to control for correlation across each observation and to account for censoring. We find that (i) pfiesteria-related fish kills have a significant negative effect on the demand for seafood even though the fish kills pose no known threat to consumers through sea-food consumption, (ii) seafood consumers are not responsive to expert risk information designed to reassure...

Tipo: Journal Article

Palavras-chave: Pfiesteria; Seafood demand; Non-market valuation; Resource /Energy Economics and Policy.

Ano: 2006

URL: http://purl.umn.edu/10205

ABSOLUTE VERSUS RELATIVE RISK PERCEPTIONS: AN APPLICATION TO ECONOMIC VALUES OF SEAFOOD SAFETY

Huang, Ju-Chin; Haab, Timothy C.; Whitehead, John C..

We examine the impact of multiple risks of related goods on consumption of a risky good. We argue that the consumption of a risky good depends on both its absolute risk level and its relative risks to other risky goods. Seafood consumption in eastern North Carolina is studied. We elicit, in a survey, the individual perceived risks as the reference points to derive the economic value of reducing health risk in seafood consumption. Revealed and stated data are combined to trace out demand changes in response to absolute and relative risk reductions. Our results show that seafood consumption is affected by the perceived absolute risk and by the relative risk to poultry, which confirms that individuals react to the multiple risks in a nonlinear way--as...

Using Biomedical Technologies to Inform Economic Modeling: Challenges and Opportunities for Improving Analysis of Environmental Policies

Palavras-chave: Food Consumption/Nutrition/Food Safety.

Ano: 2001

URL: http://purl.umn.edu/20731

Roe, Brian E.; Haab, Timothy C..

Advances in biomedical technology have irrevocably jarred open the black box of human decision making, offering social scientists the potential to validate, reject, refine and redefine the individual models of resource allocation that form the foundation of modern economics. In this paper we (1) provide a comprehensive overview of the biomedical methods that may be harnessed by economists and other social scientists to better understand the economic decision making process; (2) review research that utilizes these biomedical methods to illuminate fundamental aspects of the decision making process; and (3) summarize evidence from this literature concerning the basic tenants of neoclassical utility that are often invoked for positive welfare analysis of...

TEMPORAL INSENSITIVITY OF PVWTP AND IMPLIED DISCOUNT RATES IN CVM

Palavras-chave: Neuroeconomics; Neuroscience; Brain imaging; Genetics; Welfare economics; Utility theory; Biology; Decision making; Preferences; Institutional and Behavioral Economics; Research Methods/ Statistical Methods; D01; D03; D6; D87.

Ano: 2009

URL: http://purl.umn.edu/49151

The sensitivity of WTP is tested in terms of the present value and the implied discount rates are derived by varying the length of benefit and the temporal payment schedules. Results show that holding the length of the project constant, the present value of willingness to pay does not vary significantly across payment schemes (one time payment, versus life of the project, versus perpetuity). Heteroskedasticity of error term over payment schemes fails to be accepted. Holding the payment scheme constant, the present value of WTP is insensitive to the life of the project (5 or 10 years). The implied discount rates are high as previous literatures.

Contingent Valuation and the Economic Value of Air-Pollution-Related Health Risks in China

Palavras-chave: Research Methods/ Statistical Methods.

Ano: 2003

URL: http://purl.umn.edu/21921

Guo, Xiaoqi; Haab, Timothy C.; Hammitt, James K..

This study investigates the economic valuation of air-pollution-related health risks in China by applying the contingent valuation method. An individual interview survey is conducted to elicit resident's willingness-to-pay (WTP) for health risk reductions of asthma and mortality. Binary choice WTP question is used in the in-person interview. Using binary probit model, the estimated value of a statistical case of asthma is about US$2300, median VSL estimated is about US $24,000. The issues of private and public provision mechanisms of health risk reduction, and the scale effect of the WTP to the magnitude of risk are also discussed.

FLIGHT FROM BLIGHT VS. NATURAL EVOLUTION: DETERMINATS OF HOUSEHOLD RESIDENTIAL LOCATION CHOICE AND SUBURBANIZATION

Palavras-chave: Health Economics and Policy.

Ano: 2006

URL: http://purl.umn.edu/21366

Bayoh, Isaac; Irwin, Elena G.; Haab, Timothy C..

Using a unique dataset on the characteristics, origin, and destination of households who engaged in intrametropolitan moves in the Columbus, Ohio area, we estimate a hybrid conditional logit choice model of residential location that separately identifies the push/pull influence of local public goods, namely school quality and public safety, from household income and other lifecycle effects. Our results provide evidence of both a "natural evolution" of households, due to income and household structural changes, as well as a "flight from blight", due to higher crime rates, lower school quality, and lower quality of housing stock in the central city. In comparing the magnitudes of these variables, we find that the influence of public school quality is...

Risk Valuation in the Presence of Risky Substitutes: An Application to Demand for Seafood

Palavras-chave: Community/Rural/Urban Development; Land Economics/Use.

Ano: 2002

URL: http://purl.umn.edu/19668

Huang, Ju-Chin; Haab, Timothy C.; Whitehead, John C..

We attempt to value health risks by combining traditional demand impact analysis with direct elicitation of individuals’ risk perceptions of food safety. We examine the impact of multiple risks of related goods on consumption of a risky good. We argue that the consumption of a risky good depends on both its absolute risk level and its relative risks to other risky goods. Seafood consumption in eastern North Carolina was studied. We elicited, in a survey, individual perceived risks as reference points to derive the economic value of reducing health risk in seafood consumption. Revealed and stated data were combined to trace out demand changes in response to absolute and relative risk reductions. Our results show that seafood consumption is affected by the...

Tipo: Journal Article

Palavras-chave: Absolute and Relative Risks; Food Borne Health Risk; Revealed and Stated Data; Risk Substitutes; D1; D8; I12; Q21.

Ano: 2004

URL: http://purl.umn.edu/42938

THE ECONOMIC VALUE OF MARINE RECREATIONAL FISHING: APPLYING BENEFIT TRANSFER TO MARINE RECREATIONAL FISHERIES STATISTICS SURVEY (MRFSS)

Jeong, Hyojin; Haab, Timothy C..

Using two data sets from the same source but in different years (1994 and 1997) and regions (Northeast and Southeast), benefit transfer estimates are compared with original estimates to examine the convergent validity of benefit function transfer. Although benefit transfer error could go up to over 400% of original estimates for a particular case, the magnitude of benefit transfer error is less than 100% of original estimates for most cases. Since two data sets used for benefit transfer are from different regions and years, whether regional or temporal variation is more responsible for benefit transfer error can not be determined without intra-regional or intra-temporal data.

Tipo: Working or Discussion Paper

Palavras-chave: Resource /Energy Economics and Policy.

Ano: 2004

URL: http://purl.umn.edu/28322

Willingness to Pay for Biodiesel in Diesel Engines: A Stochastic Double Bounded Contingent Valuation Survey

Jeanty, Pierre Wilner; Haab, Timothy C.; Hitzhusen, Frederick J..

The double bounded dichotomous choice format has been proven to improve efficiency in contingent valuation models. However, this format has been criticized due to lack of behavioral and statistical consistencies between the first and the second responses. In this study a split sampling methodology was used to determine whether allowing respondents to express uncertainty in the follow-up question would alleviate such inconsistencies. Results indicate that allowing respondents to express uncertainty in the follow-up question was effective at reducing both types of inconsistencies while efficiency gain is maintained.

REVISITING BID DESIGN ISSUES IN CONTINGENT VALUATION

Palavras-chave: Biodiesel; Diesel; Environmental benefits; Contingent valuation; Willingness to pay; Double bounded model; And statistical and behavioral inconsistencies; Demand and Price Analysis; Resource /Energy Economics and Policy; I18; L91; Q42; Q51; Q53.

Ano: 2007

URL: http://purl.umn.edu/9868

A uniform bid design from a predetermined uniform distribution is proposed as a practical and robust alternative to existing optimal or naïve bid designs. Analytics and simulations show that the uniform design provides efficiency better than naïve designs under ideal conditions and outperforms optimal designs with poor initial information.

Asymmetric Search and Loss Aversion: Choice Experiment on Consumer Willingness to Search in the Gasoline Retail Market

Palavras-chave: Research Methods/ Statistical Methods.

Ano: 2004

URL: http://purl.umn.edu/20162

Castilla, Carolina; Haab, Timothy C..

Price search enables consumers to overcome information asymmetries, it can lead to a reduction in price dispersion and it can increase consumer surplus, but search is costly. In this paper, an internet survey is conducted among a random sample of 490 drivers in the State of Ohio to answer the question, when are consumers more likely to search? The internet survey affords us the opportunity to impose exogenous price changes in a random sample of gasoline consumers to examine the decision-making process behind intended search decisions. Results indicate that among the respondents who faced prices below their expected price, only 12% chose to search, whereas 45% searched when prices were above. Results suggest that asymmetric search can be explained by...

THE INFLUENCE OF WATER QUALITY ON THE HOUSING PRICE AROUND LAKE ERIE

Palavras-chave: Price search; Choice experiment; Search cost; Gasoline market; Consumer/Household Economics; Demand and Price Analysis; D83; D03.

Ano: 2010

URL: http://purl.umn.edu/61672

Ara, Shihomi; Irwin, Elena G.; Haab, Timothy C..

The primary objective of this paper is to estimate the influence of Lake Erie water quality on the housing price by taking spatial effects into account. The robust LM tests for spatial autocorrelation suggested that spatial error model specification is more likely model in our study. Fecal coliform counts and Secchi depth disk reading are used as water quality measures. In order to overcome the spatio-temporal aspects of Secchi depth disk reading data, Kriging was used for spatial prediction. We found the significant influences of both water quality measures on housing values. Gradient effects considering the distance from a beach and water quality variables are also observed.

NORMS, SELF-SANCTIONING, AND CONTRIBUTIONS TO THE PUBLIC GOOD

Palavras-chave: Public Economics.

Ano: 2006

URL: http://purl.umn.edu/21275

Interis, Matthew G.; Haab, Timothy C..

The relationship between norms, self-sanctioning, and people’s decisions about contributing to public goods is complex and often misunderstood in the public goods literature. We develop a model in which individuals hold an injunctive norm indicating how much they believe one should contribute to the public good. From the model we derive the following testable hypotheses: an increase in one’s perception of the norm level of contribution to the public good (1) induces negative self-sanctioning and (2) will lead one to contribute more to the public good, and (3) that contributing to the public good induces positive self-sanctioning. To test these hypotheses, we elicit stated preferences for contributions to an organization which offsets carbon emissions...

CUSTOMER WILLINGNESS TO PAY FOR MULTI-INGREDIENT, PROCESSED ORGANIC FOOD PRODUCTS

Palavras-chave: Public goods; Norms; Sanctioning; Image; Environmental Economics and Policy; Public Economics; H4; Q5; D0.

Ano: 2009

URL: http://purl.umn.edu/55964

Batte, Marvin T.; Beaverson, Jeremy; Hooker, Neal H.; Haab, Timothy C..

This is a report of a customer intercept survey of customers in seven central Ohio grocery stores. Six were conventional stores of a national grocery chain (Traditional Grocery); of these, two were suburban , two were city central, and two were in predominately rural locations. The seventh store was a health/whole foods store (Specialty Grocery). The survey addressed customer willingness to pay for alternative levels of organic content in breakfast cereals, customer purchase patterns for organic foods, and customer opinions about the benefits of organic and other food characteristics. Forty-two percent of traditional grocery shoppers reported purchases of organic foods, the majority purchasing at least twice monthly. Shoppers in the specialty grocery...