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Scale and taste heterogeneity for forest biodiversity: Models of serial nonparticipation and their effects

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  • Thiene, Mara
  • Meyerhoff, Jürgen
  • De Salvo, Maria

Abstract

Serial non-participation is a response behavior that is frequently found in stated choice experiments. One form of serial non-participation is that a varying number of respondents chooses always the zero-price or status quo alternative. The approaches used in the literature to deal with this problem vary from excluding those respondents to using applying latent class models to endogenously allow for different preference structures. However, latent class models also allow to assign respondents to a known class. In this paper we compare specifications of latent class models with and without restrictions. Additionally, we control for differences in the error variance across respondents by applying a scale-extended latent class model. The comparisons are designed to show whether respondents are allocated differently among classes and whether willingness to pay estimates are affected significantly. The data are from a choice experiment regarding management actions to enhance forest biodiversity. The data set is characterized by a high percentage of respondents who were not willing to pay; almost 50% of the respondents always chose the zero price alternative locating this sample rather at the top of the range of respondents who are not willing to pay.

Suggested Citation

  • 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, vol. 18(4), pages 355-369.
  • Handle: RePEc:eee:foreco:v:18:y:2012:i:4:p:355-369
    DOI: 10.1016/j.jfe.2012.06.005
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    Cited by:

    1. Wiktor L. Adamowicz & Klaus Glenk & Jürgen Meyerhoff, 2014. "Choice modelling research in environmental and resource economics," Chapters,in: Handbook of Choice Modelling, chapter 27, pages 661-674 Edward Elgar Publishing.
    2. Riccardo Scarpa & Cristiano Franceschinis & Mara Thiene, 2017. "A Monte Carlo Evaluation of the Logit-Mixed Logit under Asymmetry and Multimodality," Working Papers in Economics 17/23, University of Waikato.
    3. Davis, Katrina J & Burton, Michael & Kragt, Marit E, 2016. "Discrete choice models: scale heterogeneity and why it matters," Working Papers 235373, University of Western Australia, School of Agricultural and Resource Economics.
    4. Brown, Zachary S. & Dickinson, Katherine L. & Paskewitz, Susan, 2015. "A generalized latent class logit model of discontinuous preferences in repeated discrete choice data: an application to mosquito control in Madison, Wisconsin," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205613, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    5. repec:eee:foreco:v:29:y:2017:i:pa:p:4-13 is not listed on IDEAS
    6. Mara Thiene & Riccardo Scarpa & Jordan Louviere, 2015. "Addressing Preference Heterogeneity, Multiple Scales and Attribute Attendance with a Correlated Finite Mixing Model of Tap Water Choice," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(3), pages 637-656, November.
    7. 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, vol. 40(5), pages 1003-1020, September.
    8. Juutinen, Artti & Kosenius, Anna-Kaisa & Ovaskainen, Ville, 2014. "Estimating the benefits of recreation-oriented management in state-owned commercial forests in Finland: A choice experiment," Journal of Forest Economics, Elsevier, vol. 20(4), pages 396-412.
    9. Sviataslau Valasiuk & Mikołaj Czajkowski & Marek Giergiczny & Tomasz Żylicz & Knut Veisten & Marine Elbakidze & Per Angelstam, 2017. "Are Bilateral Conservation Policies for the Białowieża Forest Unattainable? Analysis of Stated Preferences of Polish and Belarusian Public," Working Papers 2017-09, Faculty of Economic Sciences, University of Warsaw.

    More about this item

    Keywords

    Choice experiment; Forest biodiversity; Forest conversion; Scale-extended latent class model; Serial nonparticipation;

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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