scholarly journals Households’ willingness to pay and preferences for improved cook stoves in Ethiopia

2021 ◽  
Author(s):  
Mekonnen Bersisa ◽  
Almas Heshmati ◽  
Alemu Mekonnen
Keyword(s):  
Willingness To Pay ◽  
New Technology ◽  
Market Price ◽  
Discrete Choice Models ◽  
Fractional Factorial ◽  
Preference Heterogeneity ◽  
Marginal Rate ◽  
Rural Ethiopia ◽  
Marginal Rate Of Substitution ◽  
Cook Stoves

AbstractThis paper examines households’ preferences, willingness to pay, and determinants of adopting improved cook stoves in rural Ethiopia. The study uses primary household data selected randomly from three districts in Ethiopia’s Oromia region. The data was collected using a mix of contingent and choice experiment methods of valuation. The former used a double-bounded value elicitation method, while the latter used a fractional factorial design to efficiently generate an attribute and level combination for the improved cook stoves. The study also used various discrete choice models for data analysis and also used models which account for scale and preference heterogeneity. The findings show that the sample households were aware of the effects of using traditional cook stoves and the benefits of using improved cook stoves. However, they were constrained by the availability of the new technology and discouraged by the low-quality of the products that they had used so far. The estimated mean willingness to pay ranged from about 150 Birr to 350 Birr which is lower than the market price of the improved cook stoves. Emission reduction, reducing fire risks, and the durability of the cook stove positively affected its adoption, while price discouraged its use. Higher levels of education, higher incomes, non-farm employment, and having more livestock increased the probability of adopting the new gas stoves. The study recommends that policymakers and product designers should use the mean willingness to pay and marginal rate of substitution for the different attributes as a benchmark for product design and pricing that fit households’ preferences and ability to pay. The lower mean willingness to pay means that a public subsidizing policy is needed for effectively disseminating improved cook stoves in rural Ethiopia.

A Model of Inequality Aversion and Private Provision of Public Goods

2020 ◽  
Vol 20 (2) ◽  
Author(s):  
Hide-Fumi Yokoo
Keyword(s):  
Public Goods ◽  
Public Good ◽  
Theoretical Foundation ◽  
Inequality Aversion ◽  
Public Good Provision ◽  
Marginal Rate ◽  
Private Provision ◽  
Marginal Rate Of Substitution ◽  
Good Provision ◽  
Corner Solutions

AbstractI develop a model of inequality aversion and public goods that allows the marginal rate of substitution to be variable. As a theoretical foundation, utility function of the standard public goods model is nested in the Fehr-Schmidt model. An individual’s contribution function for a public good is derived by solving the problem of kinky preference and examining both interior and corner solutions. Results show that the derived contribution function is not monotonic with respect to the other individual’s provision. Thus, the model can be used to explain empirical evidence for the effect of social comparison on public-good provision.

The effects of personal experience on choice-based preferences for wildfire protection programs

2013 ◽  
Vol 22 (2) ◽  
pp. 234 ◽  
Author(s):  
Thomas P. Holmes ◽  
Armando González-Cabán ◽  
John Loomis ◽  
José Sánchez
Keyword(s):  
Willingness To Pay ◽  
Personal Experience ◽  
Choice Experiment ◽  
Prior Experience ◽  
Preference Heterogeneity ◽  
Risk Averse ◽  
Risk Seeking ◽  
Economic Rationale ◽  
Trade Offs ◽  
Risk Loss

In this paper, we investigate homeowner preferences and willingness to pay for wildfire protection programs using a choice experiment with three attributes: risk, loss and cost. Preference heterogeneity among survey respondents was examined using three econometric models and risk preferences were evaluated by comparing willingness to pay for wildfire protection programs against expected monetary losses. The results showed that while nearly all respondents had risk seeking preferences, a small segment of respondents were risk neutral or risk averse. Only respondents who had personal experience with the effects of wildfire consistently made trade-offs among risk, loss and cost and these respondents were willing to pay more for wildfire protection programs than were respondents without prior experience of the effects of wildfire. The degree to which people with prior experience with the effects of wildfire can effectively articulate an economic rationale for investing in wildfire protection to other members of their own or other communities facing the threat of wildfires may influence the overall success of wildfire protection programs.

scholarly journals Valuing the impact of Self-rated Health and Social Support on life satisfaction among Hong Kong Chinese population

2021 ◽  
Author(s):  
Chee Hon Chan
Keyword(s):  
Social Support ◽  
Life Satisfaction ◽  
Hong Kong ◽  
Chinese Population ◽  
Cost Benefit ◽  
Marginal Rate ◽  
Self Rated Health ◽  
Marginal Rate Of Substitution ◽  
Compensating Surplus ◽  
Rate Of Substitution

Abstract Background Research has highlighted that satisfaction in health and social support are key areas of life affecting individual’s wellbeing. Many social and public health initiatives use these two intervention mechanisms to improve individual’s wellbeing. For the purpose of cost-benefit assessment, there has been growing interest in expressing these intervention effects in economic terms. However, only a handful of studies have ever estimated these effects in economic terms, and none of which examined in a Chinese context. The aim of this study is to extend this line of valuation work to estimate the implicit willingness-to-pays on the effects of improving individuals’ self-rated health status (SRH) and social support (SS) on their life satisfaction in the Chinese population. Methods Using individual’s life satisfaction data from a two-wave representative panel survey in Hong Kong (n = 1,109), this study first conducted a cross-lagged analysis with structural equation modelling technique to examine the causal effects of SRH and SS on life satisfaction, while simultaneously adjusting their reverse causal influences. The use of this cross-lagged approach was the effort to minimising the endogeneity problem. Then, substituting the respective estimates to the formulae of compensating surplus, the marginal rate of substitution of SRH and SS with respect to individual’s equivalised monthly household were estimated and were then expressed as the willingness-to-pays on the effect of improving individuals’ SRH and SS on their life satisfaction. Results The cross-lagged analysis ascertained the casual effects of SRH (β = 0.078, 95%CI: 0.020, 0.151) and SS on individuals’ satisfaction with life. The sample’s marginal rate of substitution of SRH and SS were found to be 1.28 (95%CI: 0.43, 2.15) and 1.36 (95%CI: 0.23, 2.49) respectively. Translating into the concept of compensating surplus, the implicit monetary values of improving the sample’s SRH from “poor health” to “excellent health” and their SS from “little support” to “a lot of support” are equivalent to an increase in their equivalised monthly household income by HK$56,000 and HK$39,400 respectively. Conclusions This study has implications for the cost-benefit assessment in wellbeing initiatives for the Chinese population.

Italian millennials' preferences for wine: an exploratory study

2020 ◽  
Vol 122 (8) ◽  
pp. 2403-2423
Author(s):  
Federico Nassivera ◽  
Gianluigi Gallenti ◽  
Stefania Troiano ◽  
Francesco Marangon ◽  
Marta Cosmina ◽  
...  
Keyword(s):  
New Media ◽  
Willingness To Pay ◽  
Carbon Footprint ◽  
Generation Y ◽  
Logit Model ◽  
Random Parameter ◽  
Multinomial Logit Model ◽  
Discrete Choice Models ◽  
Content Type ◽  
Wine Consumption

PurposeThis paper aims to investigate the wine consumption among young people belonging to the so-called millennial generationDesign/methodology/approachThis study uses a questionnaire and a choice experiment (CE) with a multinomial logit model (MNL), implementing a random parameter logit model (RPL), to investigate the attitudes of millennials towards wine consumption, their purchasing behaviours and their willingness to pay for attributes of the products; in particular regarding the follwing: region of origin, “winescape”, certification, carbon footprint claim and price.FindingsMillennials appear to drink wine less frequently; they consume it more often in social on-premise settings, having a slightly higher willingness to pay and preferring carbon-neutral brands when choosing wine.Research limitations/implicationsThe limitation of this research was the analysis of a simulated situation where consumers declared their intention to purchase and not the effective purchase behaviour in the market.Further research should investigate wider millennials groups, also using the new media communication tools that characterise the communication behaviour of Generation Y. In this way, it would be possible to interview a millennial group at the national or international level.Practical implicationsThe research identifies some characteristics of millennials’ habits that can take into account the strategies of wine companies in order to develop a constructive relationship with Generation Y in Italy.Social implicationsThis research contributes to knowledge regarding the wine consumption habits of Italian millennials.Originality/valueThis paper applies discrete choice models to consumption situations in order to analyse millennials' preference and their willingness to pay for some innovative attributes of wine, in particular the carbon footprint.

scholarly journals Impacts of PST on Optimal Production and Marketing Decisions of a Grow-Finish Hog Farm Operation

1993 ◽  
Vol 22 (2) ◽  
pp. 166-174 ◽  
Author(s):  
Ramu Govindasamy ◽  
Donald J. Liu ◽  
James Kliebenstein
Keyword(s):  
Feed Efficiency ◽  
Turnover Rate ◽  
New Technology ◽  
Market Price ◽  
Primary Response ◽  
Price Effect ◽  
Optimal Production ◽  
Meat Price ◽  
Aggregate Supply ◽  
The Impact

This paper examines the impact of PST on the optimal production/marketing decisions of a grow-finish hog farm operation. The analysis evaluates PST from three angles: the feed efficiency effect, the leaner meat price effect, and the aggregate-supply-induced price effect. When limited to the feed efficiency effect only, the primary response to the new technology is to increase the animal turnover rate of the operation. When the leaner meat price effect is also included, marketing weight increases while turnover rate remains relatively unchanged. Additionally, if the increased aggregate supply depressed the market price by more than 10%, the benefits from improved feed efficiency and leaner meat will be completely dissipated. Aggregate price adjustments (reductions) of less than 10 percent maintained positive producer benefits resulting from improved feed efficiency and leaner meat.

scholarly journals Why Are Women Penalized in Product Markets?

2019 ◽  
Vol 5 ◽  
pp. 237802311986102 ◽  
Author(s):  
Tamar Kricheli-Katz ◽  
Tali Regev ◽  
Shelley Correll
Keyword(s):  
Willingness To Pay ◽  
Survey Data ◽  
Gender Gap ◽  
Gender Stereotypes ◽  
Market Price ◽  
Product Markets ◽  
Using Data

Previous research using data from eBay found that women receive lower prices than men when selling the exact same products. The current project explores why this gender gap obtains and why some products have larger gender price gaps than others. To answer these questions, we exploit the variation in the gender price gap across products found in the earlier eBay data together with new survey data on the perceptions people have about seemingly male-typed and female-typed products and about people’s uncertainty about the prices of products. We show that women are penalized more for selling products that are perceived to be typically owned by men compared to products that are perceived to be typically owned by women. We further demonstrate that the effects of gender stereotypes are greater when buyers’ uncertainty increases: when buyers are uncertain about their willingness to pay for a product or about its market price, women sellers are penalized more.

Smallholder preferences and willingness-to-pay measures for microcredit

2018 ◽  
Vol 10 (3) ◽  
pp. 462-481 ◽  
Author(s):  
Zhao Ding ◽  
Awudu Abdulai
Keyword(s):  
Willingness To Pay ◽  
Interest Rates ◽  
Latent Class ◽  
Smallholder Farmers ◽  
Mixed Logit ◽  
Latent Class Models ◽  
Preference Heterogeneity ◽  
Content Type ◽  
Lower Interest Rate ◽  
Class Models

Purpose The purpose of this paper is to examine smallholders’ preferences and willingness to pay for microcredit products with varying attribute combinations, in order to contribute to the debate on the optimal design of rural microcredit. Design/methodology/approach Data used in this study are based on a discrete choice experiment from 552 randomly selected respondents. Mixed logit and latent class models are estimated to examine the choice probability and sources of preference heterogeneity. Endogenous attribute attendance models are applied to account for attribute non-attendance (ANA) phenomenon, focusing on separate non-attendance probability as well as joint non-attendance probability. Findings The results demonstrate that preference heterogeneity and ANA exist in the smallholder farmers’ microcredit choices. Averagely, smallholder farmers prefer longer credit period, smaller credit size, lower transaction costs and lower interest rate. Guarantor collateral method and installment repayment positively affect their preferences as well. Moreover, respondents are found to be willing to pay more for the attributes they consider important. The microcredit providers are able to attract new customers under the current interest rates, if the combination of attributes is appropriately adjusted. Originality/value This study contributes to the debate by assessing the preference trade-off of different microcredit attributes more comprehensively than in previous analyses, by taking preference heterogeneity and ANA into account.

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