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Inferring Attribute Non-attendance from Discrete Choice Experiments: Implications for Benefit Transfer

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  • Klaus Glenk
  • Julia Martin-Ortega
  • Manuel Pulido-Velazquez
  • Jacqueline Potts

Abstract

Typical convergent validity tests of benefit transfer based on stated preference data assume that willingness to pay (WTP) estimates have been accurately measured, and that differences in WTP arise from differences in observable and unobservable characteristics between the study and the policy sites. In this paper, we conduct a convergent validity test assuming equality of underlying preferences, but allow for the possibility that transfer errors arise from differences in the way that respondents process information in the preference elicitation tasks. Using data from an identical survey instrument applied to the population of two river basins in Spain, we obtain marginal and total WTP estimates for ecological improvements of water bodies and the corresponding transfer errors across sites. Results of equality constrained latent class (ECLC) models that infer attribute non-attendance (AN-A) are compared to results from mixed logit (MXL) models in WTP space. We find large absolute and relative differences in marginal and total WTP between sites for the MXL models, and significantly reduced transfer errors for the ECLC models. This paper therefore provides further evidence that AN-A can significantly affect environmental values derived from attribute-based stated preference methods and is the first to investigate the implications for benefit transfer. Copyright Springer Science+Business Media Dordrecht 2015

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  • Klaus Glenk & Julia Martin-Ortega & Manuel Pulido-Velazquez & Jacqueline Potts, 2015. "Inferring Attribute Non-attendance from Discrete Choice Experiments: Implications for Benefit Transfer," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 60(4), pages 497-520, April.
  • Handle: RePEc:kap:enreec:v:60:y:2015:i:4:p:497-520
    DOI: 10.1007/s10640-014-9777-9
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    3. Robert J. Johnston & Ewa Zawojska, 2018. "Benefit Transfer and Commodity Measurement Scales: Consequences for Validity and Reliability," Working Papers 2018-26, Faculty of Economic Sciences, University of Warsaw.
    4. Logar, Ivana & Brouwer, Roy & Campbell, Danny, 2020. "Does attribute order influence attribute-information processing in discrete choice experiments?," Resource and Energy Economics, Elsevier, vol. 60(C).
    5. Oyinbo, O. & Maertens, M. & Chamberlin, J. & Vanlauwe, B. & Craufurd, P. & Kamara, A., 2018. "Maize Farmers Preferences for ICT-based extension services: Evidence from a Choice Experiment in Nigeria," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277328, International Association of Agricultural Economists.
    6. Zhenshan Chen & Stephen K. Swallow & Ian T. Yue, 2020. "Non-participation and Heterogeneity in Stated: A Double Hurdle Latent Class Approach for Climate Change Adaptation Plans and Ecosystem Services," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 77(1), pages 35-67, September.
    7. Robert J. Johnston & Ewa Zawojska, 2020. "Relative Versus Absolute Commodity Measurements in Benefit Transfer: Consequences for Validity and Reliability," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(4), pages 1245-1270, August.

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