Attribute processing in environmental choice analysis: implications for willingness to pay
AbstractData from a discrete choice experiment is used to investigate the implications of failing to account for attribute processing strategies (APSs). The research was designed to elicit the economic benefits associated with landscape restoration activities that were intended to remediate environmental damage caused by illegal dumping activities. In this paper we accommodate APSs using an equality constrained latent class model. By retrieving the conditional class membership probabilities we recover estimates of the weights that each respondent assigned to each attribute, which we subsequently use ensure unnecessary weight is not allocated to attributes not attended to by respondents. Results from the analysis provide strong evidence that significant gains in models fit as well as more defensible and reliable willingness to pay estimates can be achieved using when the APSs are accounted for.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Agricultural Economics Society in its series 84th Annual Conference, March 29-31, 2010, Edinburgh, Scotland with number 91718.
Date of creation: 29 Mar 2010
Date of revision:
Attribute processing strategies; environmental restoration; equality constrained latent class model; multinomial logit model; willingness to pay; Environmental Economics and Policy;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-07-17 (All new papers)
- NEP-DCM-2010-07-17 (Discrete Choice Models)
- NEP-ENV-2010-07-17 (Environmental Economics)
- NEP-TUR-2010-07-17 (Tourism Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kjartan Sælensminde, 2002. "The Impact of Choice Inconsistencies in Stated Choice Studies," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 23(4), pages 403-420, December.
- Marsh, Dan & Mkwara, Lena Asimenye & Scarpa, Riccardo, 2010. "Does respondent’s perceived knowledge of the status quo affect attribute attendance and WTP in choice experiments? Evidence from the Karapiro Catchment Freshwater streams," 2010 Conference, August 26-27, 2010, Nelson, New Zealand 96809, New Zealand Agricultural and Resource Economics Society.
- Poulos, Christine & Yang, Jui-Chen & Patil, Sumeet R. & Pattanayak, Subhrendu & Wood, Siri & Goodyear, Lorelei & Gonzalez, Juan Marcos, 2012. "Consumer preferences for household water treatment products in Andhra Pradesh, India," Social Science & Medicine, Elsevier, vol. 75(4), pages 738-746.
- Mohammed Alemu & Morten Mørkbak & Søren Olsen & Carsten Jensen, 2013.
"Attending to the Reasons for Attribute Non-attendance in Choice Experiments,"
Environmental & Resource Economics,
European Association of Environmental and Resource Economists, vol. 54(3), pages 333-359, March.
- Mohammed Hussen Alemu & Morten Raun Mørkbak & Søren Bøye Olsen & Carsten Lynge Jensen, 2011. "Attending to the reasons for attribute non-attendance in Choice Experiments," IFRO Working Paper 2011/8, University of Copenhagen, Department of Food and Resource Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.