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on Discrete Choice Models |
| By: | Robert Gillespie (Gillespie Economics, a resource and environmental economics consultancy practice); Jeff Bennett (Crawford School of Economics and Government, The Australian National University) |
| Abstract: | Waste policy in Australia has a strong focus on kerbside recycling. This has a range of costs and benefits to the community, including non-market benefits. However, in Australia, there has been little investigation of household willingness to pay for kerbside recycling. This paper used mixed logit choice modelling to estimate the willingness to pay of households in Brisbane, Australia for kerbside waste collection services including kerbside recycling. It was found that households in Brisbane have a positive and significant willingness to pay of $131.49 per annum for fortnightly kerbside recycling and would be willing to pay an additional $18.30 to increase the frequency of this service to weekly. The utility of respondents was, however, found to decline by $34.18 per year if general waste collection increased from weekly to twice a week. Based on the assumptions used in this study it would appear that the willingness to pay for kerbside recycling exceeds the net financial costs of this service, suggesting that the scheme is economically efficient. However, the reported economic values for recycling may overstate the community’s true willingness to pay if household responses to the choice questions were confounded by their underlying perceptions about the environmental and resource sustainability benefits of recycling |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:een:eenhrr:1097&r=dcm |
| By: | Robert Gillespie (Gillespie Economics, a resource and environmental economics consultancy practice); Jeff Bennett (Crawford School of Economics and Government, The Australian National University) |
| Abstract: | Kerbside recycling in Australia has focused on paper, cardboard, plastics and bottles and in some areas green waste. Another area for potential kerbside recycling is organic waste. This study uses a dichotomous choice contingent valuation format with follow-up open-ended willingness to pay question to estimate the household willingness to pay for the introduction of a kerbside recycling scheme for kitchen waste. Two provision rules were used. The first sample split contained a majority decision rule while the second sample split contained a provision rule where participation is voluntary. Households across the Brisbane statistical sub-division currently pay in the order of $250 per annum for their kerbside waste collection scheme. This study indicates that on average Brisbane households would be WTP an additional $32 to $35 per year for a general waste bin where food waste is split from general waste. There was no significant difference in results between sample splits with majority or voluntary provision rules. Whether the provision of a food waste recycling scheme is economically efficient requires a consideration of all the potential costs and benefits. Other relevant costs and benefits for inclusion in a benefit cost analysis would include those associated with bin replacement, any additional collection and transport costs, composting costs, revenues from compost sales and avoided landfill costs. If a compulsory food waste recycling scheme could be provided to all households for less than $32 to $35 per household per annum then the benefits of the scheme would exceed the costs and would be considered to be economically efficient and desirable from a community welfare perspective. Given the difficulties of estimating precise WTP values from dichotomous choice data, any BCA of a compulsory scheme incorporating the results of this study should undertake sensitivity testing that includes the range of values reported including dichotomous choice and open-ended means to determine the robustness of BCA results to variations in the welfare estimate. Notwithstanding, the results of any BCA, decision-makers also need to be cognisant of the high proportion of respondents who did not support a kerbside food waste recycling scheme. The data from the study could also be used to undertake a BCA of a voluntary scheme. |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:een:eenhrr:1096&r=dcm |
| By: | Robert Gillespie (Gillespie Economics, a resource and environmental economics consultancy practice); Jeff Bennett (Crawford School of Economics and Government, The Australian National University) |
| Abstract: | Australian governments are committed to the expansion of marine protected areas (MPAs) in Australian waters and have already established over 200 MPAs. However, this policy direction has a range of costs and benefits for the community which have largely remained unquantified. One of the main benefits of establishing MPAs are the non use values that the community for the protection of marine biodiversity. This study uses a dichotomous choice contingent valuation format with follow-up open-ended willingness to pay question to estimate these non use values for the establishment of MPAs in South-west Marine Region of Australia. It was found that on average Australian households would be WTP $104 for the establishment of MPAs that cover 10% of the South-west Marine Region. Aggregating this mean WTP estimate to 50% of the population of Australian households gives an aggregate WTP of $400M. However, whether the establishment of MPAs in the South-west Marine Region is economically efficient requires a consideration of all the potential costs and benefits. Other relevant costs and benefits for inclusion in a benefit cost analysis would include those associated with displacement of commercial and non-commercial uses, additional planning, compliance and monitoring costs as well as any predicted increases in commercial and non-commercial use values. If the net costs of establishing MPA over 10% of the South-west Marine Region are less than $400M, then the non-use benefits of establishing MPAs would exceed the other net costs and it would be considered to be economically efficient and desirable from a community welfare perspective. Given the difficulties of estimating precise WTP values from dichotomous choice data, any BCA of MPAs in the South-west Marine Region, incorporating the results of this study, should undertake sensitivity testing that includes the range of values reported including dichotomous choice and openended means to determine the robustness of BCA results to variations in the welfare estimate. |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:een:eenhrr:1083&r=dcm |
| By: | Moeser, Anke |
| Abstract: | Im deutschen Lebensmitteleinzelhandel finden sich neben dem bekannten Sonderangebot vermehrt neue Aktionsformen wie âBOGOFâ, âRabattâ, âLinksaveâ oder âCouponsâ. Der vorliegende Beitrag diskutiert die Akzeptanz dieser unterschiedlichen Verkaufsförderungs-aktionen. Dabei ist davon auszugehen, dass Verbraucher zwischen dem Nutzen einer Aktion und dem Aufwand bei der Wahrnehmung der Aktion abwägen. Im Rahmen einer Verbraucherbefragung zeigt sich eine deutliche Verbraucherpräferenz für das bekannte Sonderangebot, während aufwändigere Aktionsformen wie der Coupon eher abgelehnt werden. Daneben sind Opportunitätskosten der Zeit und Einkaufsfähigkeiten der Verbraucher wichtige Einflussfaktoren auf die Nutzung einer Aktion. Sales promotions like price actions, but also new forms as âBOGOFâ, ârebatesâ, âlinksavesâ or âcouponsâ are widely used in the German retailing sector. This study discusses the consumer acceptance of these diverse promotion offers. It can be argued that consumers evaluate a promotion in dependence of the perceived utility and the costs using the promotion. Based on results of a consumer survey, consumers still favour the traditional price action, whereas promotions which involve more effort (e.g., coupons) are not accepted. Opportunity costs of time and consumer knowledge regarding buying decisions are identified as determinants of consumersâ choices. |
| Keywords: | Verkaufsförderungsaktionen, Lebensmitteleinzelhandel, multinomiale Logitanalyse, Cluster-analyse, Sales promotions, retailing sector, multinomial logit analysis, cluster analysis, Marketing, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:gewi11:114499&r=dcm |
| By: | Peter, Gunter; Salamon, Petra; Christoph, Inken B.; Weible, Daniela; Burgelt, Doreen |
| Abstract: | Vor dem Hintergrund eines sinkenden Schulmilchkonsums in Deutschland stellt sich generell die Frage, welche Faktoren für die Kaufentscheidung von Schulmilch wichtig sind und, ob unterschiedliche Konsummuster für einzelne Gruppen existieren. Dieser Beitrag erweitert bestehende ökonometrische Erklärungsansätze um Schüler- und Haushaltscharakteristika. Dazu werden auf der Grundlage der Discrete Choice-Theorie zwei Konsummuster, die Gruppe der Schulmilchbesteller und die Gruppe der Nicht-Besteller, betrachtet. Mit Hilfe eines Logit-Modells werden Einflussfaktoren analysiert, die über das Konsummuster entscheiden. Als wichtige Faktoren kristallisieren sich die befürwortenden und ablehnenden Einstellungen der Schulkinder und ihrer Eltern gegenüber Milch und Schulmilch heraus. Weiterhin variiert die Chance Schulmilch zu bestellen mit dem Geschlecht, dem Alter und dem Migrationshintergrund der Schulkinder. Schulkinder aus Haushalten mit niedrigen Nettoeinkommen weisen eine höhere Chance auf, keine Schulmilch zu bestellen als Kinder aus Haushalten mit höherem Einkommen. Das Produktsortiment beeinflusst ebenfalls die Bestellwahrscheinlichkeit. Ist dieses vielfältig, erhöht sie sich, werden hingegen auch andere Getränke angeboten, sinkt sie. School milk consumption is currently declining in Germany. To analyse the reasons for this development existing econometric models are extended by characteristics of pupils and their households. Based on discrete choice theory, a logit model is applied investigating factors which distinguish school milk buyers from non-buyers. Important factors are the attitude of pupils and children towards milk and school milk as well as nutritional behavior at school. Buying behavior varies with age, sex and the migration background of pupils. Girls, pupils with migration background and older pupils show a higher chance of being in the non-buyer group. The same holds for children who belong to a low-income household. At school a higher variety of school milk products increases the chance for buying school milk while offering non-milk beverages reduces it. |
| Keywords: | Schulmilch, Logit-Modell, Nachfrageanalyse, school milk, logit model, demand analysis, Agribusiness, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:gewi11:115358&r=dcm |
| By: | Marta-Costa, Ana Alexandra; Lourenco-Gomes, Lina |
| Abstract: | In a context of growing global threats, from climate change, the depletion and degradation of natural resources, to the recent global economic crisis, consequences of short and long term are being witnessed, which undermine the agriculture sustainability. The systems vulnerability, their inability to resilience and the need for innovation is observed, emphasizing also the most capable systems (more sustainable), offering new opportunities and encouraging more environmentally friendly practices. This work takes as starting point the evolution of economic, environmental and social parameters in farms, in recent years, in order to try to identify the difficulties and the solutions capable of sustaining agriculture in the context of multiple hazards at the farm level. The main methodology focuses on inquiries to the responsible agents for developing the main agriculture activities held in Trás-os-Montes, including farmers and their associations. The results confirm the dependence of production factors outside the farm, the limited availability and the high cost of manpower, the weakness of marketing channels and the poor organization of the sector as the main problems. Effective responses to these situations are the opportunities of the activities under study: (a) establishment of an organized marketing circuit, (b) strengthening of mutual help between farms, (c) collective use of inputs, (d) use of environmentally friendly production practices, (e) self-use of products produced on the farm, strengthening their autonomy. This work proposes the society valuation for different levels of agriculture intensity, through discrete choices methodology, to identify the real importance that society attributes to the agrarian activity. |
| Keywords: | Farming sustainability, swot analysis, proposals, International Relations/Trade, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae11:114368&r=dcm |
| By: | Tilahun, Mesfin; Mathijs, Erik; Muys, Bart; Vranken, Liesbet; Deckers, Jozef; Gebregziabher, Kidanemariam; Gebrehiwot, Kindeya; Bauer, Hans |
| Abstract: | Frankincense from Boswellia papyrifera forest (BPF) is a traded non timber forest product (NTFP) used in pharmaceutical, food, cosmetic and chemical industries. However, the resource in northeastern Africa is under continuous degradation and requires conservation measures. Data from a discrete choice contingent valuation study are used to assess the factors influencing rural householdsâ willingness to pay (WTP) and willingness to contribute labor (WTCL) for BPF conservation in Ethiopia. The standard probit, bivariate probit and interval data models were used for modeling respondentsâ WTP and WTCL. We found household income as the most important factor affecting WTP whereas number of household labor is the most important factor affecting WTCL. Mean lower bound annual WTP of US$ 4.68 and WTCL of 7.03 days per household were estimated. This study indicated that despite Ethiopia is a low income country, people are willing to contribute for conservation of the resource. |
| Keywords: | Willingness to pay, Boswellia papyrifera, Conservation, Contingent valuation, Resource /Energy Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae11:116085&r=dcm |
| By: | Voltaire, Louinord; Nassiri, Abdelhak; Bailly, Denis; Boncoeur, Jean |
| Abstract: | In this paper, we develop an empirical test of consistency in contingent willingness to pay (WTP) responses, which is based on the following a priori expectation. In economics, when an individual considers paying for public goods, his decision to pay, and his WTP are based on utility-maximising behaviour. Accordingly, supposing other factors are identical, if individual A expresses greater interest in paying for public goods in general than individual B, that is because A receives more benefits from the use and/or the non-use of these goods than B. Continuing with this logic, if both individuals are asked about their WTP for a precise public good, A should logically be more likely to pay and should be willing to pay more than B. Thus, the test consists in measuring the degree to which people are likely to give money for public goods in general, and including it as a covariate in WTP models for the specific public good. If this covariate is significantly positive, then WTP responses are considered consistent. If this is not the case, then future research might focus on motives behind inconsistent WTP responses. To assess the robustness of the test, we consider 3 situations 1) the covariate is exogenous 2) it is endogenous and uncorrelated with the choice to pay or not for the specific good 3) it is endogenous and correlated with this choice. Using a contingent valuation study estimating touristsâ willingness to pay for future nature reserves in the Gulf of Morbihan, we find that WTP responses are consistent in all situations considered. |
| Keywords: | contingent valuation, consistency, endogeneity, Consumer/Household Economics, Resource /Energy Economics and Policy, C24, D12, Q26, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae11:114378&r=dcm |
| By: | Scarpa, Riccardo; Notaro, Sandra; Raffaelli, Roberta; Louviere, Jordan |
| Keywords: | Resource /Energy Economics and Policy, |
| Date: | 2011–09–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae11:115990&r=dcm |
| By: | Moser, Riccarda; Raffaelli, Roberta |
| Keywords: | Crop Production/Industries, Demand and Price Analysis, |
| Date: | 2011–09–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae11:114646&r=dcm |
| By: | Janssen, Meike; Hamm, Ulrich |
| Abstract: | Organic food is often labelled with an organic certification logo to gain consumer trust in the product integrity. The number of different organic certification logos in the European market raises the question whether consumers prefer specific logos over others. The aim of this paper is to analyse consumersâ willingness-to-pay (WTP) for different organic logos to give recommendations for actors in the organic sector. Choice experiments and structured interviews were conducted with 2,441 consumers of organic food in six European countries. The data was analysed with random parameter logit models. We found great differences between the tested logos regarding the price premium that consumers were willing to pay. The highest WTP was recorded for well-known logos that consumers perceived as credible with high production standards and a strict control system. It is thus recommended for suppliers of organic food to label products with an organic logo preferred by consumers. Organisations owning an organic logo should put effort into measures for increasing consumer awareness of the logo and forming consumer perceptions of the certification scheme behind it. |
| Keywords: | Organic logos, willingness-to-pay, credence goods, random parameter logit models, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae11:114454&r=dcm |
| By: | Kallas, Zein; Maria Gil, Jose |
| Abstract: | Our paper analyzes consumer preferences toward fresh rabbit meat and alternative marketing formats for rabbit meat. The empirical analysis uses consumer-level questionnaires to elicit information regarding consumer attitudes toward rabbit meat in Catalonia (Spain). We use the Dual Response Choice Experiment (DRCE) design which allows for analyzing forced and unforced options in choice experiments using the same sample. The Heteroscedastic Extreme- Value (HEV) model is used due to its relaxation of the restrictive assumption made in the Multinomial Logit Model regarding the identically distributed error term across alternatives. Our results demonstrate a higher preference for rabbit meat from âCatalanâ origin followed by higher quality certification information. Convenience and âready to eatâ products made from rabbit meat may help bolster increased consumption. An effective communication campaign is needed to educate individuals regarding the health characteristics of rabbit compared to other types of meat. Furthermore, results demonstrate that the ordering of attributes is not significantly different from forced and non-forced choices obtained from the DRCE design. However, significant differences on the magnitude of the preferences for some attributesâ levels are found. |
| Keywords: | Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae11:114779&r=dcm |
| By: | Araujo, Claudio; Araujo-Bonjean, Catherine; Brunelin, Stephanie |
| Abstract: | The aim of this paper is to exploit grain price data to detect the warning signs of looming food crises in Mali, Burkina Faso and Niger. Firstly we identify which markets play a leading role at the national and regional level. The second step consists of identifying crisis periods and characterizing price movements during the period proceeding a crisis. This analysis leads to the identification of early warning indicators whose relevance is tested using panel data qualitative choice models. The results show that monitoring price movements on "leading markets" during crucial periods of the year can help in forecasting future crises. |
| Keywords: | Food security, Africa, Niger, early warning systems, discrete choice panel model, Food Security and Poverty, Q18, C25, D40, O18, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae11:114226&r=dcm |
| By: | Bontemps, Christophe; Racine, Jeffery S.; Simioni, Michel |
| Keywords: | Research Methods/ Statistical Methods, |
| Date: | 2011–09–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae11:116005&r=dcm |