Analysis of the relationship between distance and willingness to pay (WTP) is important for estimation and transfer of environmental benefits. Several contingent valuation (CV) studies have investigated this topic, but results are mixed. This paper describes a choice modelling (CM) application that estimates distance effects on parameters of three environmental attributes. Combinations of these attributes create different management policies for native vegetation. The CM study is based on a sampling procedure that provides a geographically balanced sample and statistical tests to choose the best specification of the distance–WTP relationship. Welfare analysis shows that disregarding distance causes under-estimation of individual and aggregated benefits and...
The objectives of this research are to investigate the influence of geographical distance on the cointegration relationship in order to increase knowledge on the issue, and to indentify its role in Brazilian agricultural markets. With this intention, the cointegration framework is applied allowing for the presence of multiple structural breaks in the long run equation. The inclusion of breaks is in response to the multiple changes of the agricultural system during the period of investigation. The spatial integration is calculated between each market pair. The cointegration coefficient and geographical distance relationship is calculated by means of an OLS regression, taking into account the quality of roads and the proximity to a border or port. The effect...
The price transmission between markets is often interpreted as providing insights into the market’s infrastructure efficiency and transaction costs. Thus, finding a possible explanation for the degree of integration has become an issue of special interest. Recent researchers have pointed out the distance between markets as one of the possible factors. However, the distance is closely related with other elements, such as road quality and the proximity to an export point, which affect transport costs, opportunity costs and thus the integration. Therefore, what the most important factor is when determining the relationship among markets remains unclear. The cointegration framework, OLS and principal component regressions are applied in order to investigate...
