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Protester or non-protester: a binary state? On the use (and non-use) of latent class models to analyse protesting in economic valuation

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  • Jürgen Meyerhoff
  • Anna Bartczak
  • Ulf Liebe

Abstract

In the analysis of stated preferences studies, it is often assumed that protesting is a discretely measured item only occurring among those who are not willing to pay. However, various studies have recently shown that protest beliefs are as well held by respondents who state a positive willingness to pay (WTP). Using latent class (LC) models, we investigate the extent of heterogeneity with respect to protest beliefs among all respondents of two contingent valuation studies. The advantage of LC models is that classes of individuals are endogenously identified and no selection bias is introduced by ad hoc definitions of protesters. Further we investigate whether it is possible to identify a class of non-protesters. Finding a group of pure non-protesters could indicate how strongly stated WTP in the whole sample is affected by protest beliefs. For both samples, we find a class with strong protest beliefs but no pure non-protest class. Overall, our results suggest that LC models might not be the first choice to determine unbiased WTP measures, but they provide valuable insights into the degree of protesting expressed by different groups and corresponding determinants of group membership.
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Suggested Citation

  • Jürgen Meyerhoff & Anna Bartczak & Ulf Liebe, 2012. "Protester or non-protester: a binary state? On the use (and non-use) of latent class models to analyse protesting in economic valuation," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(3), pages 438-454, July.
    • Handle: RePEc:bla:ajarec:v:56:y:2012:i:3:p:438-454
    DOI: j.1467-8489.2012.00582.x
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    1. Barreiro-Hurle, Jesus & Espinosa-Goded, Maria & Martinez-Paz, Jose Miguel & Perni, Angel, . "Choosing not to choose: A meta-analysis of status quo effects in environmental valuations using choice experiments," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 18(01).
    2. Schaak, Henning & Musshoff, Oliver, 2020. "Public preferences for pasture landscapes in Germany—A latent class analysis of a nationwide discrete choice experiment," Land Use Policy, Elsevier, vol. 91(C).
    3. Fewell, Jason E. & Bergtold, Jason S. & Williams, Jeffery R., 2016. "Farmers' willingness to contract switchgrass as a cellulosic bioenergy crop in Kansas," Energy Economics, Elsevier, vol. 55(C), pages 292-302.
    4. Ku, Yu-Cheng & Wu, John, 2018. "Measuring respondent uncertainty in discrete choice experiments via utility suppression," Journal of choice modelling, Elsevier, vol. 27(C), pages 1-18.
    5. Peter A. Groothuis & Tanga M. Mohr & John C. Whitehead & Kristan Cockerill, 2015. "Payment and Policy Consequentiality in Contingent Valuation," Working Papers 15-04, Department of Economics, Appalachian State University.
    6. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    7. Villanueva, Anastasio J. & Glenk, Klaus & Rodriguez-Entrena, M., 2016. "Serial non-participation and ecosystem services providers’ preferences towards incentive-based schemes," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236348, Agricultural Economics Society.
    8. Ulrich J Frey & Frauke Pirscher, 2019. "Distinguishing protest responses in contingent valuation: A conceptualization of motivations and attitudes behind them," PLOS ONE, Public Library of Science, vol. 14(1), pages 1-20, January.
    9. Anastasio J. Villanueva & Klaus Glenk & Macario Rodríguez-Entrena, 2017. "Protest Responses and Willingness to Accept: Ecosystem Services Providers’ Preferences towards Incentive-Based Schemes," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(3), pages 801-821, September.
    10. Ruokamo, Enni & Kopsakangas-Savolainen, Maria & Meriläinen, Teemu & Svento, Rauli, 2019. "Towards flexible energy demand – Preferences for dynamic contracts, services and emissions reductions," Energy Economics, Elsevier, vol. 84(C).
    11. Lin, Boqiang & Qiao, Qiao, 2023. "Exploring the participation willingness and potential carbon emission reduction of Chinese residential green electricity market," Energy Policy, Elsevier, vol. 174(C).
    12. Armatas, Christopher A. & Venn, Tyron J. & Watson, Alan E., 2014. "Applying Q-methodology to select and define attributes for non-market valuation: A case study from Northwest Wyoming, United States," Ecological Economics, Elsevier, vol. 107(C), pages 447-456.
    13. Tan, Yang & Fukuda, Hiroatsu & Li, Zhang & Wang, Shuai & Gao, Weijun & Liu, Zhonghui, 2022. "Does the public support the construction of battery swapping station for battery electric vehicles? - Data from Hangzhou, China," Energy Policy, Elsevier, vol. 163(C).
    14. Kristīne Pakalniete & Heini Ahtiainen & Juris Aigars & Ingrīda Andersone & Aurelija Armoškaite & Henning Sten Hansen & Solvita Strāķe, 2021. "Economic Valuation of Ecosystem Service Benefits and Welfare Impacts of Offshore Marine Protected Areas: A Study from the Baltic Sea," Sustainability, MDPI, vol. 13(18), pages 1-30, September.
    15. Melville Saayman & Andrea Saayman, 2014. "Who is Willing to Pay to See the Big 7?," Tourism Economics, , vol. 20(6), pages 1181-1198, December.

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