An Application of Mixed Logit Estimation in the Analysis of Producers’ Stated Preferences
This paper analyzes Colorado Corn producers’ preferences over both private- and environmental public-good production system attributes. Current production practices are characterized by intensive water and chemical use, resulting in non-point source pollution to water bodies as well as soil erosion problems. Data from a stated preference survey are employed to analyze key attributes of experimentally configured irrigation systems, proposed as alternatives to current practices. Panel mixed logit estimations find positive preferences for profit, risk reduction, and, importantly, systems with less environmental impact in terms of nitrate leaching and soil erosion. The results also find presence of significant preference heterogeneity and a complementary relationship between the two environmental attributes. Analysis of this kind can be used by policy makers to predict behavioral responses associated with introduction of new technologies, or to assess welfare implications of agricultural policy changes and stricter environmental regulations.
|Date of creation:||Dec 2008|
|Date of revision:|
|Contact details of provider:|| Postal: Clark B-320, Fort Collins, CO 80523|
Web page: http://dare.colostate.edu/
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.:
- George A. Akerlof & Rachel E. Kranton, 2000. "Economics and Identity," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 715-753.
- Brekke, Kjell Arne & Kverndokk, Snorre & Nyborg, Karine, 2003.
"An economic model of moral motivation,"
Journal of Public Economics,
Elsevier, vol. 87(9-10), pages 1967-1983, September.
- Brodt, Sonja & Klonsky, Karen & Tourte, Laura, 2006. "Farmer goals and management styles: Implications for advancing biologically based agriculture," Agricultural Systems, Elsevier, vol. 89(1), pages 90-105, July.
- Ekin Birol & Melinda Smale & Ágnes Gyovai, 2006. "Using a Choice Experiment to Estimate Farmers’ Valuation of Agrobiodiversity on Hungarian Small Farms," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 34(4), pages 439-469, August.
- William A. Brock & Steven N. Durlauf, 2001. "Discrete Choice with Social Interactions," Review of Economic Studies, Oxford University Press, vol. 68(2), pages 235-260.
- Aydin Basarir & Jeffrey M. Gillespie, 2006. "Multidimensional goals of beef and dairy producers: an inter-industry comparison," Agricultural Economics, International Association of Agricultural Economists, vol. 35(1), pages 103-114, 07.
- Juha Siikamäki & David F. Layton, 2007. "Potential Cost-Effectiveness of Incentive Payment Programs for the Protection of Non-Industrial Private Forests," Land Economics, University of Wisconsin Press, vol. 83(4), pages 539-560.
- Navarro, Peter, 1988. "Why Do Corporations Give to Charity?," The Journal of Business, University of Chicago Press, vol. 61(1), pages 65-93, January.
- Karine Nyborg & Mari Rege, 2001.
"Does Public Policy Crowd Out Private Contributions to Public Goods?,"
300, Statistics Norway, Research Department.
- Nyborg, Karine & Rege, Mari, 2003. "Does Public Policy Crowd Out Private Contributions to Public Goods," Public Choice, Springer, vol. 115(3-4), pages 397-418, June.
- 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 715-19, November.
- David Hensher & Nina Shore & Kenneth Train, 2005. "Households’ Willingness to Pay for Water Service Attributes," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 32(4), pages 509-531, December.
- Swallow, Stephen K. & Opaluch, James J. & Weaver, Thomas F., 2001. "Strength-of-Preference Indicators and an Ordered-Response Model for Ordinarily Dichotomous, Discrete Choice Data," Journal of Environmental Economics and Management, Elsevier, vol. 41(1), pages 70-93, January.
- Hayashi, Kiyotada, 2000. "Multicriteria analysis for agricultural resource management: A critical survey and future perspectives," European Journal of Operational Research, Elsevier, vol. 122(2), pages 486-500, April.
- Hudson Darren & Lusk Jayson, 2004. "Risk and Transactions Cost in Contracting: Results from a Choice-Based Experiment," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 2(1), pages 1-19, February.
- David Revelt & Kenneth Train, 1998. "Mixed Logit With Repeated Choices: Households' Choices Of Appliance Efficiency Level," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 647-657, November.
- Rehman, T. & Romero, C., 1993. "The application of the MCDM paradigm to the management of agricultural systems: Some basic considerations," Agricultural Systems, Elsevier, vol. 41(3), pages 239-255.
- David F. Layton & Gardner Brown, 2000. "Heterogeneous Preferences Regarding Global Climate Change," The Review of Economics and Statistics, MIT Press, vol. 82(4), pages 616-624, November.
- José Moraga-González & Noemi Padrón-Fumero, 2002. "Environmental Policy in a Green Market," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 22(3), pages 419-447, July.
- Court, R H & Woods, Marry J, 1970. "Testing for Profit Maximization in an Empirical Situation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 11(3), pages 412-26, October.
- Moran, Dominic & McVittie, Alistair & Allcroft, David J. & Elston, David A., 2007. "Quantifying public preferences for agri-environmental policy in Scotland: A comparison of methods," Ecological Economics, Elsevier, vol. 63(1), pages 42-53, June.
- Furubotn, Eirik G & Pejovich, Svetozar, 1972. "Property Rights and Economic Theory: A Survey of Recent Literature," Journal of Economic Literature, American Economic Association, vol. 10(4), pages 1137-62, December.
- G. C. Van Kooten & Ward P. Weisensel & Duangdao Chinthammit, 1990. "Valuing Trade-Offs between Net Returns and Stewardship Practices: The Case of Soil Conservation in Saskatchewan," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(1), pages 104-113.
- Robert Innes, 2006. "A Theory of Consumer Boycotts under Symmetric Information and Imperfect Competition," Economic Journal, Royal Economic Society, vol. 116(511), pages 355-381, 04.
- Ajzen, Icek & Brown, Thomas C. & Rosenthal, Lori H., 1996. "Information Bias in Contingent Valuation: Effects of Personal Relevance, Quality of Information, and Motivational Orientation," Journal of Environmental Economics and Management, Elsevier, vol. 30(1), pages 43-57, January.
When requesting a correction, please mention this item's handle: RePEc:ags:csdawp:108719. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.