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Attribute processing in environmental choice analysis: implications for willingness to pay

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  • Campbell, Danny
  • Lorimer, Victoria
  • Aravena, Claudia
  • Hutchinson, W. George

Abstract

Data from a discrete choice experiment is used to investigate the implications of failing to account for attribute processing strategies (APSs). The research was designed to elicit the economic benefits associated with landscape restoration activities that were intended to remediate environmental damage caused by illegal dumping activities. In this paper we accommodate APSs using an equality constrained latent class model. By retrieving the conditional class membership probabilities we recover estimates of the weights that each respondent assigned to each attribute, which we subsequently use ensure unnecessary weight is not allocated to attributes not attended to by respondents. Results from the analysis provide strong evidence that significant gains in models fit as well as more defensible and reliable willingness to pay estimates can be achieved using when the APSs are accounted for.

Suggested Citation

  • Campbell, Danny & Lorimer, Victoria & Aravena, Claudia & Hutchinson, W. George, 2010. "Attribute processing in environmental choice analysis: implications for willingness to pay," 84th Annual Conference, March 29-31, 2010, Edinburgh, Scotland 91718, Agricultural Economics Society.
    • Handle: RePEc:ags:aesc10:91718
    DOI: 10.22004/ag.econ.91718
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    References listed on IDEAS

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    1. Kjartan Sælensminde, 2002. "The Impact of Choice Inconsistencies in Stated Choice Studies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(4), pages 403-420, December.
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    Cited by:

    1. Eline D'Haene & Juan Tur Cardona & Stijn Speelman & Koen Schoors & Marijke D'Haese, 2021. "Unraveling preferences for religious ties in food transactions: A consumer perspective," Agricultural Economics, International Association of Agricultural Economists, vol. 52(4), pages 701-716, July.
    2. Stephane Hess, 2014. "Latent class structures: taste heterogeneity and beyond," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 14, pages 311-330, Edward Elgar Publishing.
    3. Marit E. Kragt, 2013. "Stated and Inferred Attribute Attendance Models: A Comparison with Environmental Choice Experiments," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(3), pages 719-736, September.
    4. Mylene Lagarde, 2013. "Investigating Attribute Non‐Attendance And Its Consequences In Choice Experiments With Latent Class Models," Health Economics, John Wiley & Sons, Ltd., vol. 22(5), pages 554-567, May.
    5. Collins, Andrew T. & Rose, John M. & Hensher, David A., 2013. "Specification issues in a generalised random parameters attribute nonattendance model," Transportation Research Part B: Methodological, Elsevier, vol. 56(C), pages 234-253.
    6. Mohammed Alemu & Morten Mørkbak & Søren Olsen & Carsten Jensen, 2013. "Attending to the Reasons for Attribute Non-attendance in Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(3), pages 333-359, March.
    7. Díaz, Verónica & Montoya, Ricardo & Maldonado, Sebastián, 2023. "Preference estimation under bounded rationality: Identification of attribute non-attendance in stated-choice data using a support vector machines approach," European Journal of Operational Research, Elsevier, vol. 304(2), pages 797-812.
    8. Kravchenko, Alex, 2014. "Influence of rudimentary attribute non-attendance (ANA) on choice experiment parameter estimates and design efficiency: A Monte Carlo Simulation analysis," Journal of choice modelling, Elsevier, vol. 11(C), pages 57-68.
    9. Fenna Arnoldussen & Mark J. Koetse & Sander M. de Bruyn & Onno Kuik, 2022. "What Are People Willing to Pay for Social Sustainability? A Choice Experiment among Dutch Consumers," Sustainability, MDPI, vol. 14(21), pages 1-21, November.
    10. Marsh, Dan & Mkwara, Lena Asimenye & Scarpa, Riccardo, 2010. "Does respondent’s perceived knowledge of the status quo affect attribute attendance and WTP in choice experiments? Evidence from the Karapiro Catchment Freshwater streams," 2010 Conference, August 26-27, 2010, Nelson, New Zealand 96809, New Zealand Agricultural and Resource Economics Society.
    11. Poulos, Christine & Yang, Jui-Chen & Patil, Sumeet R. & Pattanayak, Subhrendu & Wood, Siri & Goodyear, Lorelei & Gonzalez, Juan Marcos, 2012. "Consumer preferences for household water treatment products in Andhra Pradesh, India," Social Science & Medicine, Elsevier, vol. 75(4), pages 738-746.
    12. Stephane Hess & Amanda Stathopoulos & Danny Campbell & Vikki O’Neill & Sebastian Caussade, 2013. "It’s not that I don’t care, I just don’t care very much: confounding between attribute non-attendance and taste heterogeneity," Transportation, Springer, vol. 40(3), pages 583-607, May.

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    Keywords

    Environmental Economics and Policy;

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