scholarly journals Modeling Willingness to Pay for Land Conservation Easements: Treatment of Zero and Protest Bids and Application and Policy Implications

2008 ◽  
Vol 40 (01) ◽  
pp. 267-285 ◽  
Author(s):  
Seong-Hoon Cho ◽  
Steven T. Yen ◽  
J.M. Bowker ◽  
David H. Newman
Keyword(s):  
Willingness To Pay ◽  
Probit Model ◽  
Tobit Model ◽  
Policy Implications ◽  
Land Conservation ◽  
Ordered Probit ◽  
Ordered Probit Model ◽  
Conservation Easements ◽  
Protest Responses ◽  
Significant Factors

This study compares an ordered probit model and a Tobit model with selection to take into account both true zero and protest zero bids while estimating the willingness to pay (WTP) for conservation easements in Macon County, NC. By comparing the two models, the ordered/unordered selection issue of the protest responses is analyzed to demonstrate how the treatment of protest responses can significantly influence WTP models. Both models consistently show that income and knowledge are positive and significant factors, while distance to poorer quality streams and duration of residency are negative and significant factors on WTP.

Does Happiness Adapt to Increase in Income? Evidence from Pakistan Socio-economic Survey (1998-2001)

2016 ◽  
Vol 55 (2) ◽  
pp. 113-122 ◽  
Author(s):  
Hamid Hasan
Keyword(s):  
Random Effect ◽  
Probit Model ◽  
Jel Classification ◽  
Policy Implications ◽  
Ordered Probit ◽  
Ordered Probit Model ◽  
Short Term ◽  
Hedonic Adaptation ◽  
Short Period ◽  
Economic Survey

The fact that happiness does not increase as income increases over time [the Easterlin Paradox (1974)] has puzzled a number of scholars for a number of decades. The latest research on this topic [Easterlin, et al. (2010)] concludes that happiness increases with an increment in income in the short term but it adapts to this income increment in the long term. The objective of this research is to test whether happiness adapts to income increase in the short term using two-period panel Pakistan Socio-Economic Survey [PSES (1998-2001)]. The paper makes use of a unique question on happiness asked in PSES to resolve two issues simultaneously: unavailability of happiness question in period 1 and potential inconsistency of responses to general happiness question. The paper applies Random Effect Ordered Probit model to investigate the hedonic adaptation effect using various formulations used in the happiness economics literature. The results show positive and statistically significant impact of income change on happiness with weak evidence of adaptation to income since it is statistically insignificant. The result is consistent with the studies that show no adaptation during a short period. Among several reasons for hedonic adaptation, falling positive emotions and rising aspirations are discussed along with causes of happiness and policy implications. The significance of the present research lies in the fact that it is the first study in Pakistan that tests the hedonic adaptation to income and hence contributes to the evidence on happiness dynamics. JEL Classification: I31, D60, C25 Keywords: Happiness, Adaptation, Income, Panel Ordered Probit Model

scholarly journals Are Consumers Willing to Pay More for Biodegradable Containers Than for Plastic Ones? Evidence from Hypothetical Conjoint Analysis and Nonhypothetical Experimental Auctions

2010 ◽  
Vol 42 (4) ◽  
pp. 757-772 ◽  
Author(s):  
Chengyan Yue ◽  
Charles R. Hall ◽  
Bridget K. Behe ◽  
Benjamin L. Campbell ◽  
Jennifer H. Dennis ◽  
...  
Keyword(s):  
Willingness To Pay ◽  
Survey Data ◽  
Conjoint Analysis ◽  
Probit Model ◽  
Ordered Probit ◽  
Internet Survey ◽  
Ordered Probit Model ◽  
Price Premium ◽  
Experimental Auctions ◽  
Different Types

This study used and compared hypothetical conjoint analysis and nonhypothetical experimental auctions to elicit floral customers' willingness to pay for biodegradable plant containers. The results of the study show that participants were willing to pay a price premium for biodegradable containers, but the premium is not the same for different types of containers. This article also shows the mixed ordered probit model generates more accurate results when analyzing the conjoint analysis Internet survey data than the ordered probit model.

scholarly journals Analysis of Cardinal and Ordinal Assumptions in Conjoint Analysis

2005 ◽  
Vol 34 (2) ◽  
pp. 238-252 ◽  
Author(s):  
R. Wes Harrison ◽  
Jeffrey Gillespie ◽  
Deacue Fields
Keyword(s):  
Conjoint Analysis ◽  
Degrees Of Freedom ◽  
Rating Scales ◽  
Probit Model ◽  
Tobit Model ◽  
Agricultural Economics ◽  
Ordered Probit ◽  
Ordered Probit Model ◽  
Individual Level ◽  
Utility Scale

Of twenty-three agricultural economics conjoint analyses conducted between 1990 and 2001, seventeen used interval-rating scales, with estimation procedures varying widely. This study tests cardinality assumptions in conjoint analysis when interval-rating scales are used, and tests whether the ordered probit or two-limit tobit model is the most valid. Results indicate that cardinality assumptions are invalid, but estimates of the underlying utility scale for the two models do not differ. Thus, while the ordered probit model is theoretically more appealing, the two-limit tobit model may be more useful in practice, especially in cases with limited degrees of freedom, such as with individual-level conjoint models.

scholarly journals Willingness to pay a premium for produce at direct marketing outlets: an ordered probit analysis

2018 ◽  
Vol 15 (2) ◽  
pp. 19-30
Author(s):  
S Arumugam
Keyword(s):  
Willingness To Pay ◽  
Inverse Relationship ◽  
Fresh Produce ◽  
Direct Marketing ◽  
Probit Model ◽  
Probit Analysis ◽  
Travel Distance ◽  
Ordered Probit ◽  
Internet Survey ◽  
Ordered Probit Model

The concept of farm to consumer direct marketing has been popularly known to create opportunities for farmer-consumer relationship and enhance the sustainability of the local farming business. The objective of the present study was to predict the consumers’ willingness to pay for fresh produce in the direct marketing outlets and agritourism activities. An Internet survey relating to direct marketing and agritourism was conducted to understand the characteristics of consumers. A total of 1,134 participants completed the survey from Delaware, New Jersey, and Pennsylvania. Based on their responses, an ordered probit model was developed at a low premium (1-5 percent), medium premium (6-10 percent) and high premium (11percent and above) to predict respondents’ willingness to pay a premium for produce sold at direct marketing outlets. The estimated results show that consumers’ willingness to pay more to help preserve farmland or local business is highly significant. However, we discovered an inverse relationship for the Mid-Atlantic fresh greens shoppers. On average, as the travel distance increases, the likelihood of paying a higher premium decrease based on each additional mile they travel. The results of the ordered probit model will help all relevant stakeholders from the Mid-Atlantic States to promote direct marketing and agritourism industry in the region and enhance their knowledge of the industry.SAARC J. Agri., 15(2): 19-30 (2017)

scholarly journals What Drives Climate Change Adaptation Practices in Smallholder Farmers? Evidence from Potato Farmers in Indonesia

Atmosphere ◽  
2022 ◽  
Vol 13 (1) ◽  
pp. 113
Author(s):  
Tina Sri Purwanti ◽  
Syafrial Syafrial ◽  
Wen-Chi Huang ◽  
Mohammad Saeri
Keyword(s):  
Climate Change ◽  
Climate Change Adaptation ◽  
Smallholder Farmers ◽  
Probit Model ◽  
Ordered Probit ◽  
Ordered Probit Model ◽  
Cross Sectional ◽  
Adaptation Capacity ◽  
Adaptation Practices ◽  
Significant Factors

The potato is the third most consumed crop globally after rice and wheat, but climate change has often disrupted its production. Therefore, adaptation practices are needed to maintain potato productivity. This study investigates the determinants of on- and off-farm climate change adaptation practices among smallholder farmers in Indonesia, considering adaptation intensity, which has not discussed in previous literature. The cross-sectional data were collected from 302 smallholder potato farmers in East Java, Indonesia, analyzed by a multivariate probit model to estimate the determinants. An ordered probit model was subsequently employed to understand the intensity factors. The findings indicated that the significant factors that affect farmers’ choice of on-farm adaptations were the farmers’ education, their participation in farmers’ groups, agricultural-related infrastructure, and agriculture output prices. Meanwhile, the off-farm adaptations were significantly affected by the farmers’ education, employed family members, agriculture-related infrastructure, and livestock ownership. The ordered probit model also suggested that participation in farmers groups and agricultural-related infrastructure were the most significant factors that encouraged adaptation. Therefore, adaptation planning should consider these factors to optimally improve farmers’ adaptation capacity.

Do the heterogeneous determinants of life satisfaction affect differently across borrowers of diverse credit sources? A propensity score approach

2018 ◽  
Vol 45 (8) ◽  
pp. 1142-1158 ◽  
Author(s):  
Tiken Das ◽  
Manesh Choubey
Keyword(s):  
Life Satisfaction ◽  
Propensity Score ◽  
Probit Model ◽  
Ordered Probit ◽  
Primary Data ◽  
Ordered Probit Model ◽  
Future Research ◽  
Content Type ◽  
Credit Access ◽  
Physical Assets

Purpose The purpose of this paper is to evaluate the non-monetary effect of credit access by providing an econometric framework which controls the problem of selection bias. Design/methodology/approach The study is conducted in Assam, India and uses a quasi-experiment design to gather primary data. The ordered probit model is used to evaluate the non-monetary impact of credit access. The paper uses a propensity score approach to check the robustness of the ordered probit model. Findings The study confirms the positive association of credit access to life satisfaction of borrowers. It is found that, in general, rural borrower’s life satisfaction is influenced by the ability and capacity to work, the value of physical assets of the borrowers as well as some other lenders’ and borrowers’ specific factors. But, the direction of causality of the factors influencing borrowers’ life satisfaction is remarkably different across credit sources. Research limitations/implications The study argues to provide productive investment opportunities to semiformal and informal borrowers while improving their life satisfaction score. Although the results are adjusted for selection and survivorship biases, it is impossible with the available data to assess which non-income factors explain the findings, and therefore this limitation is left to future research. Originality/value The study contributes to the literature of rural credit by assessing the probable differences among formal, semiformal and informal credit sources with respect to non-monetary impacts.

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