IDEAS home Printed from https://ideas.repec.org/p/war/wpaper/2019-07.html
   My bibliography  Save this paper

Role of information in the valuation of unfamiliar goods—the case of genetic resources in agriculture

Author

Listed:
  • Annika Tienhaara

    (Natural Resources Institute Finland (Luke))

  • Heini Ahtiainen

    (Natural Resources Institute Finland (Luke))

  • Eija Pouta

    (Natural Resources Institute Finland (Luke))

  • Mikołaj Czajkowski

    (Faculty of Economic Sciences, University of Warsaw)

Abstract

The paper uses data from a discrete choice experiment to examine information effects on stated preferences for an unfamiliar environmental good, i.e. agricultural genetic resources. We define two groups of respondents based on their use of additional information provided in an internet survey, and model information use and its effect on individual preferences and scale using the logit and mixed logit models. Our findings indicate that both sociodemographic and attitudinal variables affect the use of information, with the respondent’s age, gender, familiarity and perceptions of stakeholder responsibilities having a significant effect. The results show individual preference heterogeneity, but no significant differences in scale between the information groups after allowing the mean coefficients for the attributes to differ. Those who have used the additional information derive higher utility from the changes in the protection of agricultural genetic resources. Our results highlight the importance of genetic resource conservation and controlling for the effects of information use in choice experiment models for unfamiliar goods.

Suggested Citation

  • Annika Tienhaara & Heini Ahtiainen & Eija Pouta & Mikołaj Czajkowski, 2019. "Role of information in the valuation of unfamiliar goods—the case of genetic resources in agriculture," Working Papers 2019-07, Faculty of Economic Sciences, University of Warsaw.
  • Handle: RePEc:war:wpaper:2019-07
    as

    Download full text from publisher

    File URL: https://www.wne.uw.edu.pl/index.php/download_file/4825/
    File Function: First version, 2019
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Christie, Mike & Gibbons, James, 2011. "The effect of individual ‘ability to choose’ (scale heterogeneity) on the valuation of environmental goods," Ecological Economics, Elsevier, vol. 70(12), pages 2250-2257.
    2. Loomis, John & Ekstrand, Earl, 1998. "Alternative approaches for incorporating respondent uncertainty when estimating willingness to pay: the case of the Mexican spotted owl," Ecological Economics, Elsevier, vol. 27(1), pages 29-41, October.
    3. Hess, Stephane & Train, Kenneth, 2017. "Correlation and scale in mixed logit models," Journal of choice modelling, Elsevier, vol. 23(C), pages 1-8.
    4. Chiou, Lesley & Walker, Joan L., 2007. "Masking identification of discrete choice models under simulation methods," Journal of Econometrics, Elsevier, vol. 141(2), pages 683-703, December.
    5. Jobstvogt, Niels & Hanley, Nick & Hynes, Stephen & Kenter, Jasper & Witte, Ursula, 2014. "Twenty thousand sterling under the sea: Estimating the value of protecting deep-sea biodiversity," Ecological Economics, Elsevier, vol. 97(C), pages 10-19.
    6. Rose, John M. & Beck, Matthew J. & Hensher, David A., 2015. "The joint estimation of respondent-reported certainty and acceptability with choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 71(C), pages 141-152.
    7. Wuyang Hu & Wiktor L. Adamowicz & Michele M. Veeman, 2009. "Consumers' Preferences for GM Food and Voluntary Information Access: A Simultaneous Choice Analysis," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(2), pages 241-267, June.
    8. 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.
    9. Hoehn, John P. & Randall, Alan, 1987. "A satisfactory benefit cost indicator from contingent valuation," Journal of Environmental Economics and Management, Elsevier, vol. 14(3), pages 226-247, September.
    10. David Hensher & William Greene, 2003. "The Mixed Logit model: The state of practice," Transportation, Springer, vol. 30(2), pages 133-176, May.
    11. Mikołaj Czajkowski & Nick Hanley & Jacob LaRiviere, 2016. "Controlling for the Effects of Information in a Public Goods Discrete Choice Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(3), pages 523-544, March.
    12. Andrea Bieberstein & Jutta Roosen & Stéphan Marette & Sandrine Blanchemanche & Frederic Vandermoere, 2013. "Consumer choices for nano-food and nano-packaging in France and Germany," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 40(1), pages 73-94, February.
    13. 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.
    14. Berrens, Robert P. & Bohara, Alok K. & Jenkins-Smith, Hank C. & Silva, Carol L. & Weimer, David L., 2004. "Information and effort in contingent valuation surveys: application to global climate change using national internet samples," Journal of Environmental Economics and Management, Elsevier, vol. 47(2), pages 331-363, March.
    15. Cameron, Trudy Ann & Englin, Jeffrey, 1997. "Respondent Experience and Contingent Valuation of Environmental Goods," Journal of Environmental Economics and Management, Elsevier, vol. 33(3), pages 296-313, July.
    16. Tienhaara, Annika & Ahtiainen, Heini & Pouta, Eija, 2015. "Consumer and citizen roles and motives in the valuation of agricultural genetic resources in Finland," Ecological Economics, Elsevier, vol. 114(C), pages 1-10.
    17. Zander, Kerstin K. & Signorello, Giovanni & De Salvo, Maria & Gandini, Gustavo & Drucker, Adam G., 2013. "Assessing the total economic value of threatened livestock breeds in Italy: Implications for conservation policy," Ecological Economics, Elsevier, vol. 93(C), pages 219-229.
    18. Champ, Patricia A. & Bishop, Richard C. & Brown, Thomas C. & McCollum, Daniel W., 1997. "Using Donation Mechanisms to Value Nonuse Benefits from Public Goods," Journal of Environmental Economics and Management, Elsevier, vol. 33(2), pages 151-162, June.
    19. Pallante, Giacomo & Drucker, Adam G. & Sthapit, Sajal, 2016. "Assessing the potential for niche market development to contribute to farmers' livelihoods and agrobiodiversity conservation: Insights from the finger millet case study in Nepal," Ecological Economics, Elsevier, vol. 130(C), pages 92-105.
    20. Clem Tisdell & Clevo Wilson, 2006. "Information, Wildlife Valuation, Conservation: Experiments And Policy," Contemporary Economic Policy, Western Economic Association International, vol. 24(1), pages 144-159, January.
    21. Arvin B. Vista & Randall S. Rosenberger & Alan R. Collins, 2009. "If You Provide It, Will They Read It? Response Time Effects in a Choice Experiment," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(3), pages 365-377, September.
    22. repec:sss:wpaper:201405 is not listed on IDEAS
    23. David Hensher & John Rose & Zheng Li, 2012. "Does the choice model method and/or the data matter?," Transportation, Springer, vol. 39(2), pages 351-385, March.
    24. Mikolaj Czajkowski & Nick Hanley & Jacob LaRiviere, 2015. "The Effects of Experience on Preferences: Theory and Empirics for Environmental Public Goods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(1), pages 333-351.
    25. Sandorf, Erlend Dancke & Campbell, Danny & Hanley, Nick, 2017. "Disentangling the influence of knowledge on attribute non-attendance," Journal of choice modelling, Elsevier, vol. 24(C), pages 36-50.
    26. Mikołaj Czajkowski & Nick Hanley & Jacob LaRiviere, 2016. "Controlling for the Effects of Information in a Public Goods Discrete Choice Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(3), pages 523-544, March.
    27. Blomquist, Glenn C. & Whitehead, John C., 1998. "Resource quality information and validity of willingness to pay in contingent valuation," Resource and Energy Economics, Elsevier, vol. 20(2), pages 179-196, June.
    28. Jeong-In Chang & Seung-Hoon Yoo & Seung-Jun Kwak, 2007. "An investigation of preference uncertainty in the contingent valuation study," Applied Economics Letters, Taylor & Francis Journals, vol. 14(9), pages 691-695.
    29. Enni Ruokamo & Mikołaj Czajkowski & Nick Hanley & Artti Juutinen & Rauli Svento, 2016. "Linking perceived choice complexity with scale heterogeneity in discrete choice experiments: home heating in Finland," Working Papers 2016-30, Faculty of Economic Sciences, University of Warsaw.
    30. Hensher,David A. & Rose,John M. & Greene,William H., 2015. "Applied Choice Analysis," Cambridge Books, Cambridge University Press, number 9781107465923, May.
    31. Li Chuan-Zhong & Mattsson Leif, 1995. "Discrete Choice under Preference Uncertainty: An Improved Structural Model for Contingent Valuation," Journal of Environmental Economics and Management, Elsevier, vol. 28(2), pages 256-269, March.
    32. Mikołaj Czajkowski & Marek Giergiczny & Ewa Zawojska, 2015. "Does the number of discrete choice alternatives matter for respondents’ stated preferences? The case of tap water quality improvements," Working Papers 2015-35, Faculty of Economic Sciences, University of Warsaw.
    33. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    34. Denzil G. Fiebig & Michael P. Keane & Jordan Louviere & Nada Wasi, 2010. "The Generalized Multinomial Logit Model: Accounting for Scale and Coefficient Heterogeneity," Marketing Science, INFORMS, vol. 29(3), pages 393-421, 05-06.
    35. Stephane Hess & John Rose, 2012. "Can scale and coefficient heterogeneity be separated in random coefficients models?," Transportation, Springer, vol. 39(6), pages 1225-1239, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tobias Börger & Oliver Frör & Sören Weiß, 2017. "The relationship between perceived difficulty and randomness in discrete choice experiments: Investigating reasons for and consequences of difficulty," Discussion Papers in Environment and Development Economics 2017-03, University of St. Andrews, School of Geography and Sustainable Development.
    2. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    3. Kularatne, Thamarasi & Wilson, Clevo & Lee, Boon & Hoang, Viet-Ngu, 2021. "Tourists’ before and after experience valuations: A unique choice experiment with policy implications for the nature-based tourism industry," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 529-543.
    4. West, Grant H. & Snell, Heather & Kovacs, Kent & Nayga, Rodolfo M., 2020. "Estimation of the preferences for the intertemporal services from groundwater," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304220, Agricultural and Applied Economics Association.
    5. Tobias Börger & Joseph Cook, 2016. "Giving respondents “time to think” reduces response randomness in repeated discrete choice tasks," Discussion Papers in Environment and Development Economics 2016-13, University of St. Andrews, School of Geography and Sustainable Development.
    6. Enni Roukamo & Mikolaj Czajkowski & Nick Hanley & A. Juutinen & R. Svento, 2016. "Linking perceived choice complexity with scale heterogeneity in discrete choice experiments: home heating in Finland," Discussion Papers in Environment and Development Economics 2016-16, University of St. Andrews, School of Geography and Sustainable Development.
    7. Tobias Börger, 2016. "Are Fast Responses More Random? Testing the Effect of Response Time on Scale in an Online Choice Experiment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(2), pages 389-413, October.
    8. Mariel, Petr & Artabe, Alaitz, 2020. "Interpreting correlated random parameters in choice experiments," Journal of Environmental Economics and Management, Elsevier, vol. 103(C).
    9. Shr, Yau-Huo (Jimmy) & Ready, Richard & Orland, Brian & Echols, Stuart, 2019. "How Do Visual Representations Influence Survey Responses? Evidence from a Choice Experiment on Landscape Attributes of Green Infrastructure," Ecological Economics, Elsevier, vol. 156(C), pages 375-386.
    10. Czajkowski, Mikołaj & Bartczak, Anna & Giergiczny, Marek & Navrud, Stale & Żylicz, Tomasz, 2014. "Providing preference-based support for forest ecosystem service management," Forest Policy and Economics, Elsevier, vol. 39(C), pages 1-12.
    11. Shr, Yau-Huo & Ready, Richard C. & Orland, Brian & Echols, Stuart, 2017. "Do Visual Representations Influence Survey Responses? Evidence from a Choice Experiment on Landscape Attributes of Green Infrastructure," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258397, Agricultural and Applied Economics Association.
    12. Mariel, Petr & Meyerhoff, Jürgen, 2018. "A More Flexible Model or Simply More Effort? On the Use of Correlated Random Parameters in Applied Choice Studies," Ecological Economics, Elsevier, vol. 154(C), pages 419-429.
    13. Fifer, Simon & Rose, John M., 2016. "Can you ever be certain? Reducing hypothetical bias in stated choice experiments via respondent reported choice certaintyAuthor-Name: Beck, Matthew J," Transportation Research Part B: Methodological, Elsevier, vol. 89(C), pages 149-167.
    14. Mikolaj Czajkowski & Marek Giergiczny & William H. Greene, 2014. "Learning and Fatigue Effects Revisited: Investigating the Effects of Accounting for Unobservable Preference and Scale Heterogeneity," Land Economics, University of Wisconsin Press, vol. 90(2), pages 324-351.
    15. Bujosa, Angel & Torres, Cati & Riera, Antoni, 2018. "Framing Decisions in Uncertain Scenarios: An Analysis of Tourist Preferences in the Face of Global Warming," Ecological Economics, Elsevier, vol. 148(C), pages 36-42.
    16. Berrens, Robert P. & Jenkins-Smith, Hank & Bohara, Alok K. & Silva, Carol L., 2002. "Further Investigation of Voluntary Contribution Contingent Valuation: Fair Share, Time of Contribution, and Respondent Uncertainty," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 144-168, July.
    17. Faccioli, Michela & Czajkowski, Mikołaj & Glenk, Klaus & Martin-Ortega, Julia, 2020. "Environmental attitudes and place identity as determinants of preferences for ecosystem services," Ecological Economics, Elsevier, vol. 174(C).
    18. Mikołaj Czajkowski & Nick Hanley & Jacob LaRiviere, 2016. "Controlling for the Effects of Information in a Public Goods Discrete Choice Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(3), pages 523-544, March.
    19. Berrens, Robert P. & Bohara, Alok K. & Jenkins-Smith, Hank C. & Silva, Carol L. & Weimer, David L., 2004. "Information and effort in contingent valuation surveys: application to global climate change using national internet samples," Journal of Environmental Economics and Management, Elsevier, vol. 47(2), pages 331-363, March.
    20. Kragt, Marit Ellen, 2013. "Comparing models of unobserved heterogeneity in environmental choice experiments," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152198, Australian Agricultural and Resource Economics Society.

    More about this item

    Keywords

    Agricultural genetic resources; Discrete choice experiments; Environmental valuation; Information effects;
    All these keywords.

    JEL classification:

    • 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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:war:wpaper:2019-07. 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: . General contact details of provider: https://edirc.repec.org/data/fesuwpl.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marcin Bąba (email available below). General contact details of provider: https://edirc.repec.org/data/fesuwpl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.