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Combining mixed logit models and random effects models to identify the determinants of willingness to pay for rural landscape improvements AgEcon
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...
Tipo: Conference Paper or Presentation 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
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An Economic Assessment of the Amenity Benefits Associated with Alternative Coastal Protection Options AgEcon
Christie, Mike; Colman, Oliver.
Current government guidelines for the appraisal of coastal defence projects in the UK do not require that non-market amenity benefits to be considered . However, a new option in coastal defence, namely multi-purpose reefs, provides an opportunity to integrate coastal defence with significant amenity provision. This paper reports the findings of a choice experiment study that evaluated the amenity benefits of four alternative coastal defence systems currently being considered for Borth in west Wales. The results indicate that traditional coastal defence options such as timber and rock groynes do not generate amenity benefits, while a multipurpose reef would generate significant benefits in terms of improvements in the visual appeal of the beach, safer...
Tipo: Conference Paper or Presentation Palavras-chave: Choice experiments; Amenity value; Coastal defence; Multi-purpose reef; Resource /Energy Economics and Policy; Q26; Q51; Q58.
Ano: 2006 URL: http://purl.umn.edu/25541
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An Economic Assessment of the Impacts of the MOSE Barriers on Venice Port Activities AgEcon
Vergano, Lucia; Umgiesser, Georg; Nunes, Paulo A.L.D..
Due to its hydro-geological features, the lagoon of Venice is especially vulnerable to climate change. In particular, it is strongly affected by gradual global warming that brings about the so-called ‘acqua alta’ (high water) phenomenon with greater frequency and intensity. In order to protect the city of Venice from the more and more frequent phenomenon of flooding, some protective measures have been adopted. Among them, the system of mobile barriers commonly known as MOSE: however, by separating the lagoon from the Adriatic Sea, it interferes with ship traffic and has negative impacts on port activities. Against this background, the aim of the present work is to provide an estimate of the direct costs of ship traffic interruption due to the functioning...
Tipo: Working or Discussion Paper Palavras-chave: Climate Change; ‘Acqua Alta’; MOSE; Ship Traffic; Direct Costs; Environmental Economics and Policy; Q51; Q54.
Ano: 2010 URL: http://purl.umn.edu/59474
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Reimagining Farms as Managed Ecosystems AgEcon
Swinton, Scott M..
Tipo: Journal Article Palavras-chave: Ecosystem Services; Managed Ecosystems; Payment for Environmental Services; Multidisciplinary Research; Nonmarket Valuation; Environmental Economics and Policy; Resource /Energy Economics and Policy; Q57; Q51; Q12.
Ano: 2008 URL: http://purl.umn.edu/94650
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Public greenspace and life satisfaction in urban Australia AgEcon
Ambrey, Christopher L.; Fleming, Christopher M..
This paper examines the influence of public greenspace on the life satisfaction of residents of Australia’s capital cities. A positive relationship is found between the percentage of public greenspace in a resident’s local area and their self-reported life satisfaction. On average, it is found that a resident has an implicit willingness-to-pay of $1,168 in annual household income for a one per cent (143m2) increase in public greenspace. The relationship between public greenspace and life satisfaction however, is non-linear. Additional results suggest that the value of greenspace increases with population density and that lone parents, the less educated and those living in high rise dwellings benefit to a greater extent from the provision of public...
Tipo: Presentation Palavras-chave: Happiness; Household; Income and Labour Dynamics in Australia (HILDA); Geographic Information Systems (GIS); Greenspace; Life Satisfaction; Non-market Valuation.; Community/Rural/Urban Development; C21; Q51; R20.
Ano: 2012 URL: http://purl.umn.edu/124302
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Valuing Farmland Protection with Choice Experiments That Incorporate Preference Heterogeneity: Does Policy Guidance Depend On the Econometric Fine Print? AgEcon
Johnston, Robert J.; Bergstrom, John C..
Although mixed logit models are common in stated preference applications, resulting welfare estimates can be sensitive to minor changes in specification. This can be of critical relevance for policy and welfare analysis, particularly if policymakers are unaware of practical implications. Drawing from an application to agricultural conservation in Georgia, this paper quantifies the sensitivity of welfare estimates to common variations in mixed logit specification and assesses practical implications for policy guidance. Results suggest that practitioners may wish to reevaluate modeling and reporting procedures to reflect the welfare and policy implications of common but often unnoticed variations in model specification.
Tipo: Conference Paper or Presentation Palavras-chave: Willingness to Pay; Conservation Easement; PACE; Mixed Logit; Stated Preference; Environmental Economics and Policy; Land Economics/Use; Research Methods/ Statistical Methods; Q24; Q51.
Ano: 2010 URL: http://purl.umn.edu/61140
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Assessing farm sustainability. An application with the Italian FADN sample. AgEcon
Povellato, Andrea; Bodini, Antonella; Longhitano, Davide; Scardera, Alfonso.
As policy makers, taxpayers and consumers are willing to know the actual contribution of farming to natural and social environment, sustainability and sustainable development arose as key issues in public debates. Sustainability is a multifaceted concept that includes environmental, economic and social objectives and policy makers need information to take effective decisions. Analysts should rank decisional units according to sustainability criteria and should offer to policy makers more and more insights on the different points of view behind the three dimensions of sustainability. Within the current FADN database sustainability indicators have been identified. In some cases estimations have been necessary and in some other cases thanks to allocation of...
Tipo: Presentation Palavras-chave: Sustainability farm index; FADN; Multi-criteria approach; Farm Management; Q51; Q56.
Ano: 2012 URL: http://purl.umn.edu/124381
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Addressing the wicked problem of water resource management: An ecosystem services approach AgEcon
Hearnshaw, Edward J.S.; Tompkins, Jean-Marie; Cullen, Ross.
This paper develops a systematic assessment of the sustainability of ecosystem services provided by rivers impacted by water storage projects. Given the conflicting preferences amongst stakeholders and the incomplete, uncertain and contradictory understanding about river ecology it is recognized that managing water resources sustainably is a wicked problem. In order to address this wicked problem, the methods of multi-criteria analysis and graph analysis are applied, in accordance with integrated water resource management, to assess the potential of investing in water storage projects and explore for sustainable solutions through the construction of an ecosystem services index.
Tipo: Conference Paper or Presentation Palavras-chave: Ecosystem services; Ecosystem services index; Graph analysis; Integrated water resource management; Multi-criteria analysis; Sustainability; Wicked problems; Environmental Economics and Policy; Q15; Q25; Q27; Q51; Q58; Q57.
Ano: 2011 URL: http://purl.umn.edu/100556
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Modelling heterogeneity in response behaviour towards a sequence of discrete choice questions: a probabilistic decision process model AgEcon
McNair, Ben J.; Heshner, David A.; Bennett, Jeffrey W..
There is a growing body of evidence in the non-market valuation literature suggesting that responses to a sequence of discrete choice questions tend to violate the assumptions typically made by analysts regarding independence of responses and stability of preferences. Decision processes (or heuristics) such as value learning and strategic misrepresentation have been offered as explanations for these results. While a few studies have tested these heuristics as competing hypotheses, none has investigated the possibility that each explains the response behaviour of a subgroup of the population. In this paper, we make a contribution towards addressing this research gap by presenting a probabilistic decision process model designed to estimate the proportion of...
Tipo: Conference Paper or Presentation Palavras-chave: Choice experiment; Decision process; Ordering effects; Strategic response; Willingness to pay; Research Methods/ Statistical Methods; C25; L94; Q51.
Ano: 2011 URL: http://purl.umn.edu/100585
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Effects of Great Barrier Reef Degradation on Recreational Demand: A Contingent Behaviour Approach AgEcon
Kragt, Marit Ellen; Roebeling, Peter C.; Ruijs, Arjan.
Agricultural run-off from the Great Barrier Reef catchment area may cause degradation of coral reefs, affecting the tourism sector that relies on healthy reefs for its income generation. A Contingent Behaviour approach is used to determine the effect of reef degradation on demand for recreational dive and snorkel trips, for a case study of the Great Barrier Reef (GBR) in Australia. We assessed how reef degradation affects GBR tourism and to what extent reef-trip demand depends on the visitors' socio-economic characteristics. A count data model is developed, and results indicate that an average visitor would undertake about 60% less trips to the GBR per year, given a combined 80%, 30% and 70% decrease in coral cover, coral diversity and fish diversity,...
Tipo: Conference Paper or Presentation Palavras-chave: Coral reef; Recreation; Contingent Behaviour model; Count data models; Resource /Energy Economics and Policy; Q26; Q51; Q57.
Ano: 2006 URL: http://purl.umn.edu/25753
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Does the Cause of Death Matter? The Effect of Dread, Controllability, Exposure and Latency on the Vsl AgEcon
Alberini, Anna; Scasny, Milan.
The Value of a Statistical Life is a key input into the calculation of the benefits of environmental policies that save lives. To date, the VSL used in environmental policy analyses has not been adjusted for age or the cause of death. Air pollution regulations, however, are linked to reductions in the risk of dying for cancer, heart disease, and respiratory illnesses, raising the question whether a single VSL should be applied for all of these causes of death. We conducted a conjoint choice experiment survey in Milan, Italy, to investigate this question. We find that the VSL increases with dread, exposure, the respondents’ assessments of the baseline risks, and experience with the specific risks being studied. The VSL is higher when the risk reduction is...
Tipo: Working or Discussion Paper Palavras-chave: VSL; Conjoint Choice Experiments; Mortality Risk Reductions; Cost-benefit Analysis; Forced Choice Questions; Research Methods/ Statistical Methods; I18; J17; K32; Q51.
Ano: 2010 URL: http://purl.umn.edu/98097
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Land Preservation in British Columbia: An Empirical Analysis of the Factors Underlying Public Support and Willingness to Pay AgEcon
Androkovich, Robert A.; Desjardins, Ivan; Tarzwell, Gordon; Tsogaris, Peter.
This study extends previous empirical research on land preservation by considering an actual land preservation scheme, the agricultural land reserve in British Columbia, Canada. The reserve was established in 1973 to ensure that development did not occur on the province’s most productive agricultural land. ‘To ensure that local food production is maintained,’ ‘the economic importance of British Columbia’s agricultural sector,’ and ‘to protect the environment’ are the most important factors that underlie support for the reserve. Aggregate, provincewide willingness to pay to maintain the land reserve is substantial, with our most conservative estimate being Can$91.18 million per year.
Tipo: Journal Article Palavras-chave: Agriculture; Contingent; Land; Preservation; Valuation; Agribusiness; Agricultural Finance; International Development; Resource /Energy Economics and Policy; Q15; Q24; Q28; Q51.
Ano: 2008 URL: http://purl.umn.edu/47273
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What's Nature Done for You Lately: Measuring the Value of Ecosystem Services AgEcon
Polasky, Stephen.
Tipo: Journal Article Palavras-chave: Ecosystem services; Ecological production function; Non-market valuation; Public goods; Resource /Energy Economics and Policy; Q57; Q20; Q51; Q15.
Ano: 2008 URL: http://purl.umn.edu/94654
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Willingness to Pay for Biodiesel in Diesel Engines: A Stochastic Double Bounded Contingent Valuation Survey AgEcon
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.
Tipo: Conference Paper or Presentation 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
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Valuing the Non-Market Impacts of Underground Coal Mining AgEcon
Gillespie, Robert; Kragt, Marit Ellen.
This paper has been published in a peer-reviewed journal as: Gillespie, R. & M. E. Kragt (2012). "Accounting for nonmarket impacts in a benefit-cost analysis of underground coal mining in New South Wales, Australia." Journal of Benefit-Cost Analysis 3(2): article 4. DOI: 10.1515/2152-2812.1101
Tipo: Working or Discussion Paper Palavras-chave: Australia; Benefit cost analysis; Coal mining; Choice experiments; Natural resource management; Non-market valuation; Environmental Economics and Policy; Resource /Energy Economics and Policy; D61; Q32; Q38; Q51.
Ano: 2010 URL: http://purl.umn.edu/98239
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Land Use Issues: The Last Settler’s Syndrome AgEcon
Groothuis, Peter A..
In the last settler’s syndrome, each new settler wants the area to remain as it was on their arrival. Newcomers’ preferences often differ from long-term residents, and conflicts arise. To explore land use issues among various groups, a survey of opinions on mountain views was developed and administered to Watauga County residents in western North Carolina. Watauga County provides an interesting case study, because it is a growing area with an influx of newcomers along with long-time residents. The results suggest that agreements can be achieved on some land use issues, whereas disagreements will arise on others.
Tipo: Journal Article Palavras-chave: Billboards; Contingent valuation; Land use; Scenic amenities; Wind energy; Farm Management; International Development; Land Economics/Use; R14; Q51.
Ano: 2010 URL: http://purl.umn.edu/90668
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The effect of EU derogation strategies on the complying costs of the nitrate directive AgEcon
Van der Straeten, Bart; Buysse, Jeroen; Nolte, Stephan; Lauwers, Ludwig H.; Claeys, Dakerlia; Van Huylenbroeck, Guido.
Within the framework of the nitrate directive, member states have the possibility to apply for derogation, i.e. increasing fertilization standards under certain conditions. Several EU regions have made use of this possibility but all in a different way. In 2009, 6 different derogation policies were worked out. This paper focuses on the differences between the applied policies and makes an assessment of the impact of these differences on the application rate of derogation, the manure surplus and the costs to allocate the manure. Based on the MP-MAS model described by Van der Straeten et al. (2010) the different scenarios are applied on a single case area (Flanders) and the economic effects have been simulated. Results show large differences between the...
Tipo: Conference Paper or Presentation Palavras-chave: Nitrate directive; MAS-model; Derogation; Flanders; Agricultural and Food Policy; Q12; Q18; Q51; Q52.
Ano: 2011 URL: http://purl.umn.edu/99426
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Estimating the Value of Invasive Aquatic Plant Control: A Bioeconomic Analysis of 13 Public Lakes in Florida AgEcon
Adams, Damian C.; Lee, Donna J..
We present a bioeconomic model of three invasive aquatic plants (hydrilla, water hyacinth, and water lettuce) in 13 large Florida lakes, and simulate one-year and steady-state impacts of three control scenarios. We estimate that the steady-state annual net benefit of invasive plant control is $59.95 million. A one-year increase in control yields steady-state gains of $6.55 million per year, and a one-year lapse causes steady-state annual losses of $18.71 million. This model shows that increased control of hydrilla, water hyacinth, and water lettuce is optimal.
Tipo: Journal Article Palavras-chave: Aquatic plants; Bioeconomics; Invasive species; Lakes; Maintenance control; Q57; Q26; Q28; Q51; Q25.
Ano: 2007 URL: http://purl.umn.edu/37139
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The Survival of a Forest-dependent Species and the Economics of Intensity of Logging: A Note AgEcon
Tisdell, Clement A..
Analyses the economics of alternative land-use allocations for a forested area that ensure a targeted viable population of a forest-dependent species, such as the orangutan. The alternative of setting aside a sufficient fully protected portion of the forested area allowing the rest to be used for intensive forestry (or another intensive land use) in which the focal species is unable to survive is compared with that of fully protecting none of the forested area but allowing a sufficient portion of it to be lightly logged to ensure the survival of the targeted population of the focal species with the remainder of the land area (if any) being available for intensive use. The conditions for determining the least cost option (the one that minimizes profit...
Tipo: Working or Discussion Paper Palavras-chave: Biodiversity conservation; Conservation of forest-dependent species; Forestry; Heavy versus light logging; Intensive versus extensive land use and conservation; Logging and conservation; Opportunity cost and species conservation; Orangutan conservation.; Environmental Economics and Policy; Q23; Q51; Q57.
Ano: 2010 URL: http://purl.umn.edu/92773
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Web-based surveys and sample frame bias in choice experiment AgEcon
Tait, Peter R.; Bicknell, Kathryn; Cullen, Ross.
Researchers are seeking effective, low cost means of gathering high quality data. Technological advancements offer new avenues for achieving this objective. Web based surveys are relatively common outside the economics discipline however applied non-market valuation practitioners have been slow to adopt this modernisation in survey methodology. The non-random exclusion of individuals from the sample frame is often cited as a major problem with web-based surveying. This paper presents a comparison of data from two choice experiment survey modes, traditional mail-and-return and web-based. The socio-demographic composition of the samples is significantly different for half the variables considered. Poe tests reveal that there are significant differences in...
Tipo: Conference Paper or Presentation Palavras-chave: Web-based surveys; Sample frame bias; Choice experiment; Environmental Economics and Policy; Research Methods/ Statistical Methods; C83; Q51.
Ano: 2009 URL: http://purl.umn.edu/109594
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