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on Discrete Choice Models |
| By: | Miao, Yiyuan; Swallow, Brent M.; Goddard, Ellen W.; Sheng, Jiping |
| Keywords: | Food Consumption/Nutrition/Food Safety, Marketing, Environmental Economics and Policy |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea24:343830 |
| By: | Kang, Qi; McCallister, Donna; Fischer, Laura; Badruddoza, Syed; Gao, Long |
| Keywords: | Agribusiness, Consumer/Household Economics, Demand and Price Analysis |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea24:343888 |
| By: | Aditya, Korekallu Srinivasa; Dagmar, Mithöfer |
| Abstract: | Solar-Powered Irrigation Systems (SPIS) are an important component of India’s effort towards sustainable energy transition and are promoted with financial support under the PM-KUSUM program. In spite of the promise and the policy push, the adoption of SPIS is low. In this paper, we use the Discrete Choice Experiment (DCE) for evaluating the policy attributes in the promotion of SPIS. We selected five attributes of SPIS with different levels for the choice experiment, and a ‘D-efficient’ non-zero prior choice experimental design was used. The data was collected from 500 farmers randomly chosen from 31 villages across Mysore district, Karnataka, India, and analyzed using the random parameter logit model. For a nuanced interpretation and contextualization of the results, follow-up qualitative interviews were conducted. The results highlight that farmers preference, as indicated by the highest part worth, is for a loan with a repayment holiday of three years, followed by guaranteed service provision for 10 years. Given that SPIS is a new technology with a high initial investment, easing liquidity constraints and assuring farmers with guaranteed repair services act as strong incentives to adopt it. These findings can be incorporated into the existing policies so that they align well with farmers' preferences. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2024–07–26 |
| URL: | https://d.repec.org/n?u=RePEc:ags:iaae24:344382 |
| By: | Sandoval M, Luis A.; Lopez, María J.; Mejia, William A.; Morales, Sarahi D.; Mamani Escobar, Brenda A. |
| Keywords: | Institutional and Behavioral Economics, Marketing, Environmental Economics and Policy |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea24:343714 |
| By: | Mangole, Cool Dady; Mulungu, Kelvin; Kaghoma, Christian Kamala; Tschopp, Maurice; Kassie, Menale |
| Keywords: | Demand and Price Analysis |
| Date: | 2024–08–07 |
| URL: | https://d.repec.org/n?u=RePEc:ags:iaae24:344264 |
| By: | Fanghella, Valeria; Fezzi, Carlo; Schleich, Joachim; Sebi, Carine |
| Abstract: | This study assesses the incentive compatibility of different elicitation formats for estimating willingness to accept (WTA) in the field. We assess the convergent validity of standard and theorydriven (i.e. based on mechanism-design theory) versions of the double-bounded binary choice (DB) and the open-ended (OE) formats against the single-binary choice (SBC). Our empirical application, developed in collaboration with a major energy company, is based on estimating compensation for the installation of wind farms in respondents' municipalities of residence. We find strong evidence against convergent validity for both versions of the OE format. In comparison, both versions of the DB format, especially the theory-driven version, yield WTA estimates similar to those of the SBC, ranging from near zero for supporters of wind power to €1500-€1800 for opponents. Finally, we introduce a novel econometric approach that allows the utility of compensation to be non-linear when estimating WTA (and WTP) from binary choices. |
| Abstract: | Diese Studie bewertet die Anreizkompatibilität verschiedener Erhebungsformate zur Schätzung der Akzeptanzbereitschaft (WTA) in der Praxis. Wir bewerten die konvergente Validität von standardisierten und theoriegeleiteten (d. h. auf der Mechanismusdesign-Theorie basierenden) Versionen des doppelt begrenzten binären Auswahlformats (DB) und des offenen Formats (OE) im Vergleich zum einfach binären Auswahlformat (SBC). Unsere empirische Anwendung, die in Zusammenarbeit mit einem großen Energieunternehmen entwickelt wurde, basiert auf der Schätzung der Entschädigung für die Installation von Windparks in den Wohnorten der Befragten. Wir finden starke Hinweise gegen die konvergente Validität für beide Versionen des OE-Formats. Im Vergleich dazu liefern beide Versionen des DB-Formats, insbesondere die theoriegeleitete Version, WTA-Schätzungen, die denen des SBC ähneln und von nahezu Null für Befürworter der Windkraft bis zu 1500-1800 € für Gegner reichen. Schließlich stellen wir einen neuartigen ökonometrischen Ansatz vor, der es ermöglicht, den Nutzen der Entschädigung bei der Schätzung der WTA (und WTP) aus binären Entscheidungen nichtlinear zu gestalten. |
| Keywords: | contingent valuation, willingness to accept, wind farm, mechanism design |
| JEL: | C10 C93 D60 H41 Q51 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:rwirep:331884 |
| By: | Bertolozzi-Caredio, Daniele; Soriano, Barbara; Urquhart, Julie; Vigani, Mauro |
| Abstract: | Understanding how farmers learn and how this influences their decisions is still a key question in research, especially in the context of increasing challenges and uncertainties. We explore whether and how different learning preferences, notably learning by doing, from other farmers and through social media, influence farmers’ risk management (RM) choices. Based on a survey of farmers in Spain and the UK, we employed multivariate probit regressions and Poisson models with instrument variables. We found that all learning preferences are significantly correlated to RM choice, with learning through social media and from peers leading to more strategies adopted by the farmer, and learning by doing leading to fewer strategies. The results, however, show that each learning preference affects different specific RM strategies. Our findings suggest that policymakers should consider leveraging informal learning networks to improve farmers’ RM, whereas policy incentives might be designed to formalize and promote social media use (also by existing extension services) to boost the adoption of RM strategies. |
| Keywords: | Farm Management, Risk and Uncertainty |
| Date: | 2024–07–26 |
| URL: | https://d.repec.org/n?u=RePEc:ags:iaae24:344372 |
| By: | Fernández, Francisco J.; Vásquez-Lavín, Felipe; Rivera, Diego; Hernández, Francisco; Bopp, Carlos; Campos-Requena, Nélyda; Ponce, Roberto D. |
| Abstract: | A tariff is a crucial tool for managing rural water supply services. It helps cover the costs of operation, maintenance, and repair, ensuring the sustainability of these services. Unfortunately, due to suboptimal tariff structures, rural water systems lack the financial liquidity to handle unforeseen events. This puts them in a difficult position, especially with the increasing water demand and resource scarcity driven by climate change. Therefore, adjusting the current tariff settings is necessary to achieve financial and operational sustainability, balancing cost recovery with other social, economic, and environmental objectives. This study aims to determine how pricing components, such as fixed charges and variable costs, influence consumer acceptability of different tariff systems. Using a choice experiment, we evaluated Chilean rural water consumers' preferences for different tariff schemes. The results show that individuals are highly conservative regarding the price structure. Participants preferred maintaining existing tariffs, consistently favoring the status quo over alternative tariff structures. Significantly, the likelihood of selecting a new tariff structure is influenced more by alterations in the variable component than by changes in the fixed price of water. These findings provide valuable insights for achieving a balanced and sustainable approach to rural water management and help policy designs. |
| Keywords: | Community/Rural/Urban Development, Consumer/Household Economics, Demand and Price Analysis |
| Date: | 2024–07–26 |
| URL: | https://d.repec.org/n?u=RePEc:ags:iaae24:344377 |
| By: | Johannes Beutel; Michael Weber |
| Abstract: | We causally test alternative theories of expectation formation. Using a randomized information experiment we show overreaction is a key feature of individuals' return expectations, and individuals' response to the price-earnings ratio is opposite to the academic consensus. Our evidence is inconsistent with standard models of expectation formation but subjective mental models that deviate from objective benchmarks can jointly explain the updating behavior in the experiment, the link between individuals' prior perceptions and expectations, and the heterogeneity of updating. Conditional on their beliefs, individuals' sensitivity of equity shares in a hypothetical portfolio choice experiment is consistent with the standard Merton model. |
| JEL: | D84 E44 G11 G12 G41 G51 G53 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34489 |