|
on Discrete Choice Models |
| By: | Ghislaine Lang; Mehdi Farsi; Bruno Lanz; Sylvain Weber |
| Abstract: | We elicit homeowners' marginal willingness to pay (MWTP) for energy efficiency and low-carbon technologies in the context of replacement heating appliances. We exploit a novel within-between subject design that involves manipulating information in a two-stage discrete choice experiment (DCE) and using WTP space estimation to identify the role of financial information in reducing fossil fuel use. We find that homeowners' average valuation of energy efficiency exceeds associated heating cost savings, suggesting that they also consider non-monetary benefits when evaluating this type of investment. By contrast, we identify large heterogeneity in preferences for different heating technologies (i.e., oil, gas, wood, heat pump), and that on average, oil users' MWTP for switching to low-carbon technologies does not cover respective investment cost differentials. Finally, our difference-in-difference results show that the provision of information about private and pro-social benefits of investments fails to increase MWTP for energy efficient and low-carbon technologies. |
| Keywords: | Energy efficiency; Low-carbon technologies; Informational interventions; Product familiarity; Discrete choice experiments; WTP space estimation. |
| JEL: | D1 D8 H23 Q4 Q5 R31 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:irn:wpaper:20-07&r=all |
| By: | Hung Trung Vo (UMR MOISA - Marchés, Organisations, Institutions et Stratégies d'Acteurs - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, Thu Dau Mot University - Partenaires INRAE); Thanh Viet Nguyen (Vietnam National University); Michel Simioni (UMR MOISA - Marchés, Organisations, Institutions et Stratégies d'Acteurs - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Xuan Thuy National Park, a special nature reserve with mangrove swamps located in the Red River Delta in North Vietnam, plays an important role in combating coastal erosion and provides a habitat for many endangered bird species. This study applied double-bounded dichotomous choice contingent valuation method to directly estimate how much locals are willing to pay for mangrove conservation at Xuan Thuy National Park. In particular, the technique was used to provide better assess to the non-use value of biodiversity and ecosystem support of mangroves. Survey respondents from 350 households in the buffer zone were presented with a hypothetical scenario describing a policy that quantifies the environmental change to be achieved by 2030, and specifying a lump sum payment. Non-parametric estimate of mean WTP was found at 511,090 VND per household (22.03 USD) whereas parametric estimate of mean WTP derived from the log-logistic specification was found at 619,908 VND (26.73 USD) per household. Awareness of mangrove benefit and interest in conservation activities have a positive impact on WTP responses, in addition to income. The findings will help policy-makers adopt sound environmental policies and advise locals on the importance of protecting the mangroves which in turn protect their livelihoods. |
| Keywords: | mangrove preservation,contingent valuation,double-bounded discrete choice,Xuan Thuy national park,vietnam,environmental services valuation |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02624828&r=all |
| By: | Chorus, Caspar; Sandorf, Erlend Dancke; Mouter, Niek |
| Abstract: | We report and interpret preferences of a representative sample of the Dutch adult population for different strategies to end the so-called ‘intelligent lockdown’ which their government had put in place in response to the COVID-19 pandemic. Using a discrete choice experiment, we invited participants to make a series of choices between policy scenarios aimed at relaxing the lockdown, which were specified not in terms of their nature (e.g. whether or not to allow schools to re-open) but in terms of their effects along seven dimensions. These included health-related aspects, but also impacts on the economy, education, and personal income. From the observed choices, we were able to infer the implicit trade-offs made by the Dutch between these policy effects. For example, we find that the average citizen, in order to avoid one fatality directly or indirectly related to COVID-19, is willing to accept a lasting lag in the educational performance of 18 children, or a lasting (>3 years) and substantial (>15%) reduction in net income of 77 households. We explore heterogeneity across individuals in terms of these trade-offs by means of latent class analysis. Our results suggest that most citizens are willing to trade-off health-related and other effects of the lockdown, implying a consequentialist ethical perspective. We find that the elderly, known to be at relatively high risk of being affected by the virus, are relatively reluctant to sacrifice economic pain and educational disadvantages for the younger generation, to avoid fatalities. We also identify a so-called taboo trade-off aversion amongst a substantial share of our sample, being an aversion to accept morally problematic policies that simultaneously imply higher fatality numbers and lower taxes. We explain various ways in which our results can be of value to policy makers in the context of the COVID-19 and future pandemics. |
| Keywords: | Covid-19, Coronavirus, choice experiment, consequentialism, taboo trade-offs |
| JEL: | H00 I18 I38 |
| Date: | 2020–05–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:100575&r=all |
| By: | Habtamu Tilahun Kassahun; Jette Bredahl Jacobsen; Charles F. Nicholson |
| Abstract: | Many Stated Preference (SP) studies conducted in developing countries exhibit a low willingness to pay (WTP) for a wide range of goods and services. However, recent studies in these countries indicate that this may be a result of the choice of payment vehicle, not the preference for the good. Thus, low WTP may not indicate a low welfare effect for public projects in developing countries. We argue that in a setting where there is imperfect substitutability between money and other measures of wealth (e.g. labor), including two or more payment vehicles may be needed to obtain valid welfare estimates. Otherwise, we risk underestimating the welfare benefit of projects. We demonstrate this through a rural household contingent valuation (CV) survey designed to elicit the value of access to reliable irrigation water in Ethiopia. Our result shows that both absolute and relative endowment of labor and income highly influence respondents' choices. Of the total average annual WTP for access to reliable irrigation service, cash contribution comprises only 24.41\%. Our findings highlight the importance of accounting for cross payment vehicle correlation and potential endogeneity biases that arise in the sequence of WTP and Willingness to contribute (WTC) valuation questions. Keywords: Endogeneity; bivariate probit model; Contingent valuation; Stated preference methods; Irrigation service; Ethiopia; Developing countries |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2006.01290&r=all |
| By: | Victor Champonnois (UMR G-EAU - Gestion de l'Eau, Acteurs, Usages - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - AgroParisTech - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Katrin Erdlenbruch (UMR G-EAU - Gestion de l'Eau, Acteurs, Usages - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - AgroParisTech - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | This paper looks at the scope for individual adaptation toflood risk in the South of France. From a survey of 418 respondents in two flood-prone areas, we collected data on the adoption of individual adaptation measures and the willingness to pay for individual and collective measures. First, we study the determinants of adoption and of the willingness to pay. We then compare willingness to pay for individual versus collective measures. We end with a cost-benefit analysis of individual adaptation. Results show a willingness to pay for adaptation measures, although few have yet been adopted. Perceptions of hazards and damage have different influences: the first favours the adoption of measures, the second increases the willingness to pay for measures. Finally, the cost-benefit analysis suggests that completely dry proofing a house up to a certain height may not be economically viable. This calls for the promotion of cheaper and potentially more cost-efficient measures. |
| Keywords: | contingent valuation,cost-benefit analysis,damage mitigation,dichotomous choice,individual adaptation,flood,France,willingness to pay |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02586069&r=all |
| By: | Reto Hofstetter; Klaus M. Miller; Harley Krohmer; Z. John Zhang |
| Abstract: | Knowledge of consumers' willingness to pay (WTP) is a prerequisite to profitable price-setting. To gauge consumers' WTP, practitioners often rely on a direct single question approach in which consumers are asked to explicitly state their WTP for a product. Despite its popularity among practitioners, this approach has been found to suffer from hypothetical bias. In this paper, we propose a rigorous method that improves the accuracy of the direct single question approach. Specifically, we systematically assess the hypothetical biases associated with the direct single question approach and explore ways to de-bias it. Our results show that by using the de-biasing procedures we propose, we can generate a de-biased direct single question approach that is accu-rate enough to be useful for managerial decision-making. We validate this approach with two studies in this paper. |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2005.11318&r=all |
| By: | Giorgos Baskozos; Giorgos Galanis; Corrado Di Guilmi |
| Abstract: | We present an epidemic model in which heterogenous agents choose whether to enact social distancing practices. The policy maker decides on the timing and the extent of policies that incentivise social distancing. We evaluate the consequences of interventions and find that: (i) the timing of intervention is paramount in slowing the contagion, and (ii) a delay cannot be compensated by stronger measures. |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2020-35&r=all |
| By: | Marta Serra-Garcia (University of California, San Diego); Nora Szech (Karlsruher Institut für Technologie) |
| Abstract: | We study individual demand for COVID-19 antibody tests in an incentivized study on a representative sample of the US population. Almost 2,000 participants trade off obtaining an at-home test kit against money. At prices close to zero, 80 percent of individuals want the test. However, this broad support of testing falls sharply with price. Demand decreases by 19 percentage points per $10 price increase. Demand for testing increases with factors related to its potential value, such as age, increased length and strength of protective immunity from antibodies, and greater uncertainty about having had the virus. Willingness to pay for antibody tests also depends on income, ethnicity and political views. Trump supporters demonstrate significantly lower willingness to pay for testing. Black respondents, even if critical of Trump's approach to the crisis, pay less for testing than white and Hispanic respondents. If policy makers want a broad take-up of testing, the results suggest that tests should be free. |
| Keywords: | coronavirus, COVID-19, antibody tests, information preferences, beliefs, uncertainty |
| JEL: | D81 D91 I12 I18 |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:hka:wpaper:2020-036&r=all |
| By: | Marette, Stephan; Disdier, Anne-Celia; Beghin, John C. |
| Abstract: | We compare consumers’ attitude towards and willingness to pay (WTP) for gene-edited (GE) apples in Europe and the US. Using virtual choices in a lab and different technology messages, we estimate WTP of 162 French and 166 US consumers for new apples, which do not brown upon being sliced or cut. Messages center on (i) the social and private benefits of having the new apples, and (ii) possible technologies leading to this new benefit (conventional hybrids, GE, and genetically modified (GMO)). French consumers do not value the innovation and actually discount it when it is generated via biotechnology. US consumers do value the innovation as long as it is not generated by biotechnology. In both countries, the steepest discount is for GMO apples, followed by GE apples. Furthermore, the discounting occurs through “boycott” consumers who dislike biotechnology. However, the discounting is weaker for US consumers compared to French consumers. Favorable attitudes towards sciences and new technology totally offset the discounting of GE apples. |
| Keywords: | Consumer/Household Economics, Food Consumption/Nutrition/Food Safety |
| Date: | 2020–06–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nbaesp:303808&r=all |
| By: | Beate Fischer (University of Kassel); Gunnar Gutsche (University of Kassel); Heike Wetzel (University of Kassel) |
| Abstract: | This paper analyzes the potential for citizen participation in renewable energy cooperatives and in the energy transition process. We consider representative survey data for more than 4,200 financial decision-makers in German households and analyze (i) differences between members and non-members of renewable energy cooperatives, (ii) non-members’ willingness to participate in energy cooperatives, and (iii) factors determining citizen participation in terms of not only voluntary involvement, but also private investments. We find that the lack of familiarity with energy cooperatives among non-members is a limiting factor for the expansion of citizen participation, a finding that indicates the potential of information campaigns. However, we also reveal a substantial participation potential, as about 40% of the non-members who are familiar with the term “energy cooperative†express a high willingness to become involved. Our econometric analysis based on bivariate binary probit models complements the current state of research by showing the relevance of economic preferences such as time preferences, trust, and negative reciprocity. Interestingly, psychological personality traits, measured by the Big Five, are found to be of minor importance. We additionally confirm the findings of earlier work with regard to the relevance of individual environmental values, social contextual factors, and social norms. |
| Keywords: | Citizen participation, community renewable energy, energy transition, Big Five personality traits, economic preferences, social norms |
| JEL: | G11 M14 Q01 Q49 Q56 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:202027&r=all |