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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
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    File URL: https://www.wne.uw.edu.pl/index.php/download_file/4825/
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    References listed on IDEAS

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    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

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