Stripping Because You Want to Versus Stripping Because the Money is Good: A Latent Class Analysis of Farmer Preferences Regarding Filter Strip Programs
Governments in Ohio have attempted to limit nutrient runoff in the Maumee watershed from agriculture through the establishment of Payment for Ecosystem Services (PES) programs, in which farmers are paid to implement Best Management Practices (BMPs) such as grass filter strips. This paper seeks to understand which farmers are likely to opt into these PES programs and how farmer preferences for these programs are influenced by program attributes and farmer perceptions towards BMPs. We examine these questions using responses from a survey of Ohio farmers, where farmers choose between two PES programs and a status quo (no program) option. We allow for farmer heterogeneity using latent class analysis and find two classes of farmers. One class, denoted the “Environmental Steward” class, has a strong preference for opting into filter strip programs. Furthermore, increasing perceptions of filter strip effectiveness has no significant impact on program choice for this class. The second class, denoted the “Other” class, has a strong status quo preference. Increasing perceptions of filter strip effectiveness has a significant positive effect on members of this class. Both classes prefer programs with larger payments, smaller filter strips, and less paperwork, while program length is not significant.
|Date of creation:||2013|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
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.:
- Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-719, November.
- Roberts, Roland K. & English, Burton C. & Gao, Qi & Larson, James A., 2006.
"Simultaneous Adoption of Herbicide-Resistance and Conservation-Tillage Cotton Technologies,"
Journal of Agricultural and Applied Economics,
Southern Agricultural Economics Association, vol. 38(03), December.
- Roberts, Roland K. & English, Burton C. & Gao, Qi & Larson, James A., 2006. "Simultaneous Adoption of Herbicide-Resistant and Conservation-Tillage Cotton Technologies," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 38(03), pages 629-643, December.
- Meredith J. Soule & Abebayehu Tegene & Keith D. Wiebe, 2000. "Land Tenure and the Adoption of Conservation Practices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 993-1005.
- Sergio Colombo & Nick Hanley & Jordan Louviere, 2009. "Modeling preference heterogeneity in stated choice data: an analysis for public goods generated by agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 40(3), pages 307-322, 05.
- Colombo, Sergio & Hanley, Nicholas & Louviere, Jordan, 2008. "Modelling preference heterogeneity in stated choice data: an analysis for public goods generated by agriculture," Stirling Economics Discussion Papers 2008-28, University of Stirling, Division of Economics.
- Junyi Shen, 2009. "Latent class model or mixed logit model? A comparison by transport mode choice data," Applied Economics, Taylor & Francis Journals, vol. 41(22), pages 2915-2924.
- Lambert, Dayton M. & Sullivan, Patrick & Claassen, Roger & Foreman, Linda F., 2006. "Conservation-Compatible Practices and Programs: Who Participates?," Economic Research Report 7255, United States Department of Agriculture, Economic Research Service.
- Heckman, James J. & Robb, Richard Jr., 1985. "Alternative methods for evaluating the impact of interventions : An overview," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 239-267.
- Kelly A. Davey & W. Hartley Furtan, 2008. "Factors That Affect the Adoption Decision of Conservation Tillage in the Prairie Region of Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(3), pages 257-275, 09.
- Scarpa, Riccardo & Rose, John M., 2008. "Design efficiency for non-market valuation with choice modelling: how to measure it, what to report and why," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(3), September.
- Riccardo Scarpa & John M. Rose, 2008. "Design efficiency for non-market valuation with choice modelling: how to measure it, what to report and why ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(3), pages 253-282, 09.
- John M. Rose & Riccardo Scarpa, 2007. "Designs Efficiency for Non-market Valuation with Choice Modelling: How to Measure It, What to Report and Why," Working Papers in Economics 07/21, University of Waikato, Department of Economics.
- Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
- Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
- P. Dupraz & D. Vermersch & B. De Frahan & L. Delvaux, 2003. "The Environmental Supply of Farm Households: A Flexible Willingness to Accept Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 25(2), pages 171-189, June.
- Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, November.
- Kenneth Train, 2003. "Discrete Choice Methods with Simulation," Online economics textbooks, SUNY-Oswego, Department of Economics, number emetr2.
- Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, November.
- Greene, William H. & Hensher, David A., 2003. "A latent class model for discrete choice analysis: contrasts with mixed logit," Transportation Research Part B: Methodological, Elsevier, vol. 37(8), pages 681-698, September.
- Jeffrey M. Peterson & Craig M. Smith & John C. Leatherman & Nathan P. Hendricks & John A. Fox, 2015. "Transaction Costs in Payment for Environmental Service Contracts," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(1), pages 219-238.
- Brian W. Gould & William E. Saupe & Richard M. Klemme, 1989. "Conservation Tillage: The Role of Farm and Operator Characteristics and the Perception of Soil Erosion," Land Economics, University of Wisconsin Press, vol. 65(2), pages 167-185.
- Christine A. Ervin & David E. Ervin, 1982. "Factors Affecting the Use of Soil Conservation Practices: Hypotheses, Evidence, and Policy Implications," Land Economics, University of Wisconsin Press, vol. 58(3), pages 277-292. Full references (including those not matched with items on IDEAS)