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Non-attendance to attributes in environmental choice analysis: a latent class specification

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Author Info

  • Danny Campbell
  • David A. Hensher
  • Riccardo Scarpa

Abstract

There is a growing literature on the design and use of stated choice experiments. Analysts have developed sophisticated ways of analysing such data, using a form of discrete choice model to identify the marginal (dis)utility associated with observed attributes linked to an alternative, as well as accounting for preference and scale heterogeneity. There is also a growing literature studying the attribute processing rules that respondents use as a way of simplifying the task of choosing. Using the latent class framework, we define classes based on rules that recognise the non-attendance to one or more attributes. These processing rules are postulated to be used in real markets as a form of cognitive rationalisation. The empirical study involves a choice amongst rural environmental landscape improvements in the Republic of Ireland. We estimate models and calculate a marginal willingness to pay (WTP) for four landscape improvements, and contrast it with the results from a model specification in which all attributes are assumed to be attended to with parameter preservation. We find that the marginal WTP is, on average, significantly higher when full attribute preservation specification is adopted, raising questions about the appropriateness of current practice that assume a fully compensatory attribute choice rule.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Environmental Planning and Management.

Volume (Year): 54 (2011)
Issue (Month): 8 (December)
Pages: 1061-1076

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Handle: RePEc:taf:jenpmg:v:54:y:2011:i:8:p:1061-1076

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Cited by:
  1. Hole, Arne Risa & Kolstad, Julie Riise & Gyrd-Hansen, Dorte, 2013. "Inferred vs. stated attribute non-attendance in choice experiments: A study of doctors’ prescription behaviour," Journal of Economic Behavior & Organization, Elsevier, vol. 96(C), pages 21-31.
  2. Colombo, Sergio & Christie, Michael & Hanley, Nick, 2013. "What are the consequences of ignoring attributes in choice experiments? Implications for ecosystem service valuation," Ecological Economics, Elsevier, vol. 96(C), pages 25-35.
  3. Glenk, Klaus & Hall, Clare & Liebe, Ulf & Meyerhoff, Jürgen, 2012. "Preferences of Scotch malt whisky consumers for changes in pesticide use and origin of barley," Food Policy, Elsevier, Elsevier, vol. 37(6), pages 719-731.
  4. Anna Bartczak & Jürgen Meyerhoff, 2012. "Valuing the chances of survival of two distinct Eurasian lynx populations in Poland – do people want to keep doors open?," Working Papers 2012-14, Faculty of Economic Sciences, University of Warsaw.
  5. Scarpa, Riccardo & Notaro, Sandra & Raffaelli, Roberta & Louviere, Jordan, 2011. "Modelling attribute non-attendance in best-worst rank ordered choice data to estimate tourism benefits from Alpine pasture heritage," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland, European Association of Agricultural Economists 115990, European Association of Agricultural Economists.
  6. Doherty, Edel & Campbell, Danny & Hynes, Stephen & van Rensburg, Thomas, 2012. "Labelling effects in discrete choice experiments," Working Papers, Socio-Economic Marine Research Unit, National University of Ireland, Galway 148831, Socio-Economic Marine Research Unit, National University of Ireland, Galway.
  7. Thiene, Mara & Meyerhoff, Jürgen & De Salvo, Maria, 2012. "Scale and taste heterogeneity for forest biodiversity: Models of serial nonparticipation and their effects," Journal of Forest Economics, Elsevier, Elsevier, vol. 18(4), pages 355-369.
  8. David Hensher & Andrew Collins & William Greene, 2013. "Accounting for attribute non-attendance and common-metric aggregation in a probabilistic decision process mixed multinomial logit model: a warning on potential confounding," Transportation, Springer, Springer, vol. 40(5), pages 1003-1020, September.
  9. Kosenius, Anna-Kaisa, 2013. "Preference discontinuity in choice experiment: Determinants and implications," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 45(C), pages 138-145.
  10. David Hensher & John Rose & William Greene, 2012. "Inferring attribute non-attendance from stated choice data: implications for willingness to pay estimates and a warning for stated choice experiment design," Transportation, Springer, Springer, vol. 39(2), pages 235-245, March.
  11. Doherty, Edel & Campbell, Danny & Hynes, Stephen, 2012. "Exploring cost heterogeneity in recreational demand," Working Papers, Socio-Economic Marine Research Unit, National University of Ireland, Galway 148832, Socio-Economic Marine Research Unit, National University of Ireland, Galway.
  12. Campbell, Danny & Hensher, David A. & Scarpa, Riccardo, 2012. "Cost thresholds, cut-offs and sensitivities in stated choice analysis: Identification and implications," Resource and Energy Economics, Elsevier, Elsevier, vol. 34(3), pages 396-411.
  13. Mariel, P. & Hoyos, D. & Meyerhoff, J., 2013. "Stated or inferred attribute non-attendance? A simulation approach," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, Spanish Association of Agricultural Economists, vol. 13(1).
  14. Stephane Hess & Amanda Stathopoulos & Danny Campbell & Vikki O’Neill & Sebastian Caussade, 2013. "It’s not that I don’t care, I just don’t care very much: confounding between attribute non-attendance and taste heterogeneity," Transportation, Springer, Springer, vol. 40(3), pages 583-607, May.
  15. Doherty, Edel & Campbell, Danny & Hynes, Stephen & van Rensburg, Tom M., 2011. "The effect of using labelled alternatives in stated choice experiments: an exploration focusing on farmland walking trails in Ireland," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK, Agricultural Economics Society 108792, Agricultural Economics Society.
  16. Collins, Andrew T. & Rose, John M. & Hensher, David A., 2013. "Specification issues in a generalised random parameters attribute nonattendance model," Transportation Research Part B: Methodological, Elsevier, vol. 56(C), pages 234-253.

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