Benefit Estimates For Landscape Improvements: Sequential Bayesian Design And Respondents’ Rationality In A Choice Experiment Study
AbstractA multi-attribute stated preference approach is used to value low and high impact actions on four major landscape components addressed by the Rural Environment Protection (REP) Scheme in Ireland. Several methodological issues are addressed: the use of prior beliefs on the relative magnitudes of parameters, standardized description of different levels of landscape improvements via image manipulation software, adoption of efficiencyincreasing sequential experimental design, and sensitivity of benefit estimates to inclusion of responses from “irrational” respondents. Amongst other things, our findings indicate that Bayesian design updating can deliver significant efficiency gains, and that estimates may be up-ward biased when irrational respondents are not excluded.
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 Rural Economy and Development Programme,Teagasc in its series Working Papers with number 0606.
Length: 39 pages
Date of creation: 2006
Date of revision:
Bayesian experimental design; choice experiments; individual-specific WTP; mixed logit; non-market valuation; rationality tests; rural landscapes; status-quo bias.;
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.:
- Joseph C. Cooper & Russ W. Keim, 1996.
"Incentive Payments to Encourage Farmer Adoption of Water Quality Protection Practices,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 78(1), pages 54-64.
- Cooper, Joseph C. & Keim, Russ, 1996. "Incentive payments to encourage farmer adoption of water quality protection practices," MPRA Paper 24779, University Library of Munich, Germany.
- Geoghegan, Jacqueline & Wainger, Lisa A. & Bockstael, Nancy E., 1997. "Spatial landscape indices in a hedonic framework: an ecological economics analysis using GIS," Ecological Economics, Elsevier, vol. 23(3), pages 251-264, December.
- Cooper, Joseph C., 1997. "Combining Actual And Contingent Behavior Data To Model Farmer Adoption Of Water Quality Protection Practices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 22(01), July.
- Jayson L. Lusk & F. Bailey Norwood, 2005. "Effect of Experimental Design on Choice-Based Conjoint Valuation Estimates," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 771-785.
- M. Weeks, 2003. "Discrete choice methods with simulation, Kenneth E. Train, Cambridge University Press, 2003, ISBN: 0-521-81696-3, pp. 334," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(3), pages 379-383.
- Bjorklund, Johanna & Limburg, Karin E. & Rydberg, Torbjorn, 1999. "Impact of production intensity on the ability of the agricultural landscape to generate ecosystem services: an example from Sweden," Ecological Economics, Elsevier, vol. 29(2), pages 269-291, May.
- 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.
- Mark Morrison & Jeff Bennett & Russell Blamey & Jordan Louviere, 2002. "Choice Modeling and Tests of Benefit Transfer," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(1), pages 161-170.
- Kanninen Barbara J., 1993. "Design of Sequential Experiments for Contingent Valuation Studies," Journal of Environmental Economics and Management, Elsevier, vol. 25(1), pages S1-S11, July.
- F. Reed Johnson & Kristy E. Mathews, 2001. "Sources and Effects of Utility-Theoretic Inconsistency in Stated-Preference Surveys," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1328-1333.
- Gonzalez, Matias & Leon, Carmelo J., 2003. "Consumption process and multiple valuation of landscape attributes," Ecological Economics, Elsevier, vol. 45(2), pages 159-169, June.
- DeShazo, J. R. & Fermo, German, 2002. "Designing Choice Sets for Stated Preference Methods: The Effects of Complexity on Choice Consistency," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 123-143, July.
- Train, K. & Weeks, M., 2004. "Discrete Choice Models in Preference Space and Willingness-to Pay Space," Cambridge Working Papers in Economics 0443, Faculty of Economics, University of Cambridge.
- Pruckner, Gerald J, 1995. "Agricultural Landscape Cultivation in Austria: An Application of the CVM," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 22(2), pages 173-90.
- Silvia Ferrini & Riccardo Scarpa, 2005. "Experimental Designs for Environmental Valuation with Choice-Experiments: A Monte-Carlo Investigation," Working Papers in Economics 05/08, University of Waikato, Department of Economics.
- Hellerstein, Daniel & Nickerson, Cynthia J. & Cooper, Joseph C. & Feather, Peter & Gadsby, Dwight M. & Mullarkey, Daniel J. & Tegene, Abebayehu & Barnard, Charles H., 2002. "Farmland Protection: The Role Of Public Preferences For Rural Amenities," Agricultural Economics Reports 33963, United States Department of Agriculture, Economic Research Service.
- Foster, Vivien & Mourato, Susana, 2002. "Testing for Consistency in Contingent Ranking Experiments," Journal of Environmental Economics and Management, Elsevier, vol. 44(2), pages 309-328, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John Lennon).
If references are entirely missing, you can add them using this form.