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on Discrete Choice Models |
| By: | Spencer-Cotton, Alaya; Burton, Michael; Kragt, Marit Ellen |
| Abstract: | The Kimberley region in northern Western Australia is well known for its impressive coastal landscapes, unique marine ecosystems, its Aboriginal heritage and culture, and its rich minerals and metals deposits. To inform future management of Kimberley coastal waters, a discrete choice experiment was undertaken to estimate the values that Western Australians attach to different management outcomes in the Kimberley. These management outcomes (marine reserves, aboriginal values, recreational facilities and development) were made spatially explicit to show respondent in what regions of the Kimberley outcomes would occur. A split sample design was used to estimate values for the Kimberley region as a whole, and for two separate smaller sub-regions. This choice experiment design allows us to test for scope sensitivity, which has not been explored much in the choice experiment literature. This study is one of the few discrete choice experiments that explores scope effects for environmental non-market valuation. Willingness to pay results show similar estimates between the two smaller sub-regions. Willingness to pay for the attributes increased when management occurs at the larger geographical scope. However, it was less sensitive to changes in attribute scale. We contribute to the literature on exploring scope effects for environmental non-market valuation using discrete choice experiments in the remote Kimberley region of Western Australia. |
| Keywords: | discrete choice experiments, willingness to pay, environmental management, non-market valuation, scope tests, Environmental Economics and Policy, Q26, Q51, Q57, |
| Date: | 2016–10–24 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:249272&r=dcm |
| By: | Anna Alberini (AREC, University of Maryland and FEEM); Andrea Bigano (FEEM and CMCC); Milan Šcasný (Charles University, Environment Center); Iva Zverinová (Charles University, Environment Center) |
| Abstract: | Concerns about climate change are growing, and so is the demand for information about the costs and benefits of mitigating greenhouse gas emissions. This paper seeks to estimate the benefits of climate change mitigation, as measured by the public’s willingness to pay for such policies. We investigate the preferences of Italian and Czech households towards climate change mitigation policy options directly related to residential energy use. We use discrete choice experiments, which are administered in a standardized fashion to representative samples in the two countries through computer-assisted web interviews. The willingness to pay per ton of CO2 emissions avoided is €132 Euro for the Italians and 94 Euro for the Czech respondents (at 2014 purchasing power parity). We find evidence of considerable heterogeneity in WTP driven by income. The two samples differ in their “domestic” income elasticities of WTP, but comparison across the two countries suggests an income elasticity of WTP of one. |
| Keywords: | Energy-efficiency Incentives, Stated Preferences, CO2 Emissions Reductions, CO2 Mitigation Policies, Conjoint Choice Experiments, WTP for CO2 Emissions Reductions |
| JEL: | Q41 Q48 Q54 Q51 |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2016.64&r=dcm |
| By: | Alberini, Anna; Bigano, Andrea; Ščasný, Milan; Zvěřinová, Iva |
| Abstract: | Concerns about climate change are growing, and so is the demand for information about the costs and benefits of mitigating greenhouse gas emissions. This paper seeks to estimate the benefits of climate change mitigation, as measured by the public’s willingness to pay for such policies. We investigate the preferences of Italian and Czech households towards climate change mitigation policy options directly related to residential energy use. We use discrete choice experiments, which are administered in a standardized fashion to representative samples in the two countries through computer-assisted web interviews. The willingness to pay per ton of CO2 emissions avoided is €132 Euro for the Italians and 94 Euro for the Czech respondents (at 2014 purchasing power parity). We find evidence of considerable heterogeneity in WTP driven by income. The two samples differ in their “domestic” income elasticities of WTP, but comparison across the two countries suggests an income elasticity of WTP of one. |
| Keywords: | Energy-efficiency Incentives, Stated Preferences, CO2 Emissions Reductions, CO2 Mitigation Policies, Conjoint Choice Experiments, WTP for CO2 Emissions Reductions, Resource /Energy Economics and Policy, Q41, Q48, Q54, Q51, |
| Date: | 2016–11–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemmi:249352&r=dcm |
| By: | Hyeongwoo Kim; Wen Shi |
| Abstract: | This paper empirically investigates the determinants of the two key benchmark interest rates in China using an array of constrained ordered probit models for quarterly frequency data from 1987 to 2013. Specifically, we estimate the behavioral equation of the People's Bank of China that models its decision-making process for revisions of the benchmark deposit rate and the lending rate. Our findings imply that the PBC's policy decisions are better understood as responses to changes in inflation and money growth, while output gaps and the exchange rate play negligible roles. We also implement in-sample fit analyses and out-of-sample forecast exercises. Our empirical findings show robust and reasonably good performances of our models in understanding dynamics of these benchmark interest rates. |
| Keywords: | Monetary Policy; People's Bank of China; Ordered Probit Model; Deposit Rate; Lending Rate; In-Sample Fit; Out-of-Sample Forecast |
| JEL: | E52 E58 |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:abn:wpaper:auwp2016-14&r=dcm |
| By: | Ildephonse, Musafili; Oluoch-Kosura, Willis; Otieno, Jakinda |
| Keywords: | Despite the roles and functions of natural forests on the livelihood of the rural communities, their economic values are poorly reflected in market considerations and largely ignored in the decision making process. There is inadequate empirical evidence detailing forest management preferences in developing countries including Volcanoes National Park (VNP) in Rwanda. VNP has a considerable contribution to Rwandan rural livelihood, global environmental protection and cultural heritage. This study aimed at assessing the monetary values farmers attached to VNP. A Choice Experiment approach and Conditional Logit model were used to a sample of 192 farmers living along the park corridor using a semi-structured questionnaire. Data obtained were analyzed using Nlogit 3.0. The results showed that farmers preferred to improve the current VNP management and were willing to pay for its participatory management attributes. Farmers’ characteristics significantly influenced preferences. The findings have implication on programmes that improve the current park management and on the design of vocational, farmer groups and gender-based environmental awareness and promotional programs., Environmental Economics and Policy, Land Economics/Use, Research and Development/Tech Change/Emerging Technologies, Choice Experiment, Farmers, Participatory Management Attributes, Volcanoes National Park, |
| Date: | 2016–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246273&r=dcm |
| By: | Akaichi, Faical; Chalmers, Neil; Revoredo-Giha, Cesar |
| Abstract: | This paper aims to contribute to the scarce literature on consumers’ preferences and willingness to pay (WTP) for safer foods in Sub-Saharan Africa( in general) and in particularly Malawi. The results, from face to face interviews carried out in Malawi with urban consumers, showed that the majority of consumers prefer to buy raw milk and boil it before consumption. Nonetheless, 38% consumers opted for the ultra-pasteurized milk that is safe to consume without boiling but is significantly more expensive. Consumers were found to be willing to pay a price premium for safe milk which was significantly higher than the retail price premium. The results also showed that consumers’ preferences and willingness to pay for safer milk are not only determined by consumers’ socio-demographic characteristics but are also affected by consumers’ attitudes, consumption habits and purchase habits of milk and other dairy products. Therefore, taking into account consumers’ preferences and habits is crucial to boost the demand for safer milk in countries where the consumption of unsafe foods is still a major threat to the population life. |
| Keywords: | Consumer/Household Economics, Demand and Price Analysis, Livestock Production/Industries, |
| Date: | 2016–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246448&r=dcm |