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

Combining discrete and continuous mixing approaches to accommodate heterogeneity in price sensitivities in environmental choice analysis

This study explores ordering effects and response strategies in repeated binary discrete choice experiments (DCE). Mechanism design theory and empirical evidence suggest that repeated choice tasks per respondent introduce strategic behavior. We find evidence that the order in which choice sets are presented to respondents may provide strategic opportunities that affect choice decisions (‘strategic response’). The findings propose that the ‘strategic response’ does not follow strong cost-minimization but other strategies such as weak cost-minimization or good deal/ bad deal heuristics. Evidence further suggests that participants, as they answer more choice questions, not only make more accurate choices (‘institutional learning’) but may also become...

Tipo: Report

Palavras-chave: Discrete choice experiments; Incentive compatibility; Mixed logit models; Ordering effects; Repeated binary choice task; Response strategies; Environmental Economics and Policy.

Ano: 2010

URL: http://purl.umn.edu/107743

Campbell, Danny; Doherty, Edel; Hynes, Stephen; van Rensburg, Tom M..

Data from a discrete choice experiment aimed at eliciting the demand for recreational walking trails on farmland in the Republic of Ireland is used to explore the consequences of misspecifying the cost coefficient. To enable straightforward calculation of WTP from the distributions of the non-price coefficients, the price coefficient is typically held constant in mixed logit models. This implies that all respondents are equally price sensitive. In this paper we test the validity of this assumption. Our approach is based on a comparison and combination of discrete and continuous mixing approaches (i.e., a mixture of distributions) to uncover the unobserved heterogeneity in price sensitivities. Results from the analysis highlight that model fit and...

The Influence of Rebate Programs on the Demand for Water Heaters: The Case of New South Wales

Palavras-chave: Discrete choice experiments; Discrete mixtures; Continuous mixtures; Mixtures of distributions; Price sensitivities; Farmland recreation; Willing to pay space; Environmental Economics and Policy.

Ano: 2010

URL: http://purl.umn.edu/91723

Wasi, Nada; Carson, Richard T..

In the past decade the Australian Federal government and state governments have established a wide range of programs to cut greenhouse gas emissions from all sectors. This paper examines the role of hot water system rebate programs in shifting the existing stock of electric water heaters toward more climate friendly versions using two unique data sets from New South Wales homeowners. The first data set is based on a survey of households who recently purchased a water heater and exploits a natural experiment created by the rebate program to quantify its effects. The other data set is based on a set of stated preference questions asked of households who own an older water heater and will in the reasonably near future face a replacement decision. We find that...

Modelling the value of a multifunctional landscape – A discrete choice experiment

Palavras-chave: Climate change mitigation; Energy conservation programs; Natural experiments; Discrete choice experiments; Environmental Economics and Policy; Resource /Energy Economics and Policy.

Ano: 2011

URL: http://purl.umn.edu/100731

Borresch, Rene; Maas, Sarah; Schmitz, Kim; Schmitz, P. Michael.

In the context of today’s intensive discussion of landscape multifunctionality, one primary objective of the current European Union policy is to support the implementation of multifunctionaly within the EU. In order to assess the economical feasibility of the implementation of a multifunctional land use in the Wetterau region in Germany this study addresses the question whether the local population, which is above all affected by the degradation of landscapes, benefits from a change from today’s landscape dominated by intensive agricultural production towards a multifunctional landscape. Based on data obtained by discrete choice experiments in the Wetterau region, a cost-benefit-analysis is carried out using the modelling and assessment framework CHOICE....

The effect of using labelled alternatives in stated choice experiments: an exploration focusing on farmland walking trails in Ireland

Palavras-chave: Landscape multifunctionality; CHOICE; Discrete choice experiments; Willingness-to-Pay; Cost-benefit-analysis; Agricultural and Food Policy; Environmental Economics and Policy; Q24; Q51; Q57.

Ano: 2009

URL: http://purl.umn.edu/51641

Doherty, Edel; Campbell, Danny; Hynes, Stephen; van Rensburg, Tom M..

Discrete choice experiment data aimed at eliciting the demand for recreational walking trails on farmland in Ireland is used to explore whether some respondents reach their choices solely on the basis of the alternative’s label. To investigate this type of processing strategy, the paper exploits a discrete mixtures approach which encompasses random parameters for the attributes. We find evidence that respondents employ different processing strategies for different alternatives and differences in processing emerge between rural and urban based respondents. Results highlight that model fit and policy conclusions are sensitive to assumptions related to processing strategies among respondents

Valuing ecosystem resilience

Palavras-chave: Discrete choice experiments; Processing strategies; Discrete mixtures; Rural and urban comparison; Outdoor recreation; Welfare estimates; Land Economics/Use.

Ano: 2011

URL: http://purl.umn.edu/108792

Combining mixed logit models and random effects models to identify the determinants of willingness to pay for rural landscape improvements

The concept of ecosystem resilience is being increasingly discussed as a driver of biodiversity values. It implies that marginal deteriorations in ecosystem conditions can abruptly result in non-marginal and irreversible changes in ecosystem functioning and the economic values that the ecosystem generates. This challenges the traditional approach to the valuation of biodiversity, which has focused on quantifying values attached to individual species or other elements of ecosystems. As yet, little is known about the value society attaches to changes in ecosystem resilience. This paper investigates this value. A discrete choice experiment is used to estimate implicit prices for attributes used to describe ecosystem resilience using the Border Ranges...

Tipo: Report

Palavras-chave: Ecosystem resilience; Discrete choice experiments; Implicit prices; Willingness to pay space; Environmental Economics and Policy.

Ano: 2011

URL: http://purl.umn.edu/107806

Campbell, Danny.

This paper reports the findings from a discrete choice experiment study designed to estimate the economic benefits associated with rural landscape improvements in Ireland. Using a mixed logit model, the panel nature of the dataset is exploited to retrieve willingness to pay values for every individual in the sample. This departs from customary approaches in which the willingness to pay estimates are normally expressed as measures of central tendency of an a priori distribution. In a different vein from analysis conducted in previous discrete choice experiment studies, this paper uses random effects models for panel data to identify the determinants of the individual-specific willingness to pay estimates. In comparison with the standard methods used to...

Effects of alternative elicitation formats in discrete choice experiments

Palavras-chave: Agri-environment; Discrete choice experiments; Mixed logit; Panel data; Random effects; Willingness to pay; Demand and Price Analysis; Environmental Economics and Policy; C33; C35; Q24; Q51.

Ano: 2007

URL: http://purl.umn.edu/7975

An elicitation format prevalently applied in DCE is to offer each respondent a sequence of choice tasks containing more than two choice options. However, empirical evidence indicates that repeated choice tasks influence choice behavior through institutional learning, fatigue, value learning, and strategic response. The study reported in this paper employs a split sample approach based on field surveys using a single binary elicitation format with a majority vote implementation as the baseline to expand the research on effects of sequential binary DCE formats. We provide evidence for effects caused by institutional learning and either strategic behavior or value learning after respondents answered repeated choice questions. However, we did not find any...

Effects of alternative elicitation formats in discrete choice experiments

Palavras-chave: Discrete choice experiments; Split sample approach; Elicitation format; Incentive compatibility; Strategic behavior; Learning effects; Panel mixed logit models; Environmental Economics and Policy.

Ano: 2010

URL: http://purl.umn.edu/59158

Mapping preferences for the restoration of environmental damage caused by illegal dumping

An elicitation format prevalently applied in discrete choice experiments (DCEs) offers each respondent a sequence of choice tasks. Each choice task contains more than two choice options. Empirical evidence shows, however, that repeated choice tasks influence choice behaviour through institutional learning, fatigue, value learning and strategic response. The study reported in this paper uses a split sample approach. This approach was based on field surveys using a single binary elicitation format. To expand the research on effects of sequential binary DCE formats, a majority vote baseline was used. We present evidence for effects caused by institutional learning, and by either strategic behaviour or value learning, after respondents answered repeated...

Tipo: Report

Palavras-chave: Discrete choice experiments; Split sample approach; Elicitation format; Incentive compatibility; Strategic behaviour; Learning effects; Panel mixed logit models; Environmental Economics and Policy; Research Methods/ Statistical Methods.

Ano: 2010

URL: http://purl.umn.edu/94948

Campbell, Danny; Sinclair, Victoria.

In this paper we use a discrete choice experiment to elicit the economic benefits associated with restoring environmental damage caused by illegal dumping activities. Our study focuses on an extensive rural upland area close to Belfast, where illegal dumping activities are prevalent. Using a random parameters logit model to account for unobserved taste heterogeneity, we exploit the panel nature of the dataset to retrieve partworths, or willingness to pay (WTP) values, for every individual in the sample. We subsequently investigate the existence of spatial dependence of these estimates. As a means of benefit transfer, we also employ geostatistical methods to extend across the whole of the study area the WTP estimates derived from the collected data. The...

Choosing ‘buy none’ in food choice analysis: the role of utility balance

Palavras-chave: Discrete choice experiments; Environmental restoration; Geostatistical analysis; Random parameters logit; Spatial dependence; Illegal dumping; Willingness to pay; C25; Q51; Q53.

Ano: 2008

URL: http://purl.umn.edu/36772

Campbell, Danny; Doherty, Edel; Gibson, Vikki.

Stated choice analysis is now a widely used and accepted methodology for exploring food choice. In stated choice experiments respondents are asked to make a choice between two or more alternatives, one of which typically takes the form of a ‘buy none’ option. It is widely recognised that respondents often perceive this option differently from the other alternatives and various reasons for this have been offered. Nevertheless, the role that utility balance among the experimentally designed options plays on the propensity of respondent’s choosing ‘buy none’ has largely been overlooked. Using a non-linear representation of utility we show that the ‘buy none’ choices are sensitive to utility balance. We further show how accommodating this provides an...