Discrete/Continuous Choices in Contingent Valuation Surveys: Soil Conservation Decisions in Michigan

Luanne Lohr and Timothy Park

Review of Agricultural Economics, 1994, vol. 16, issue 1, 1-15

Abstract: A discrete/continuous model of participation in environmental programs is developed. A conditional expectation correction model is used to overcome the selectivity bias inherent in single-equation approaches used to describe participation. The two-equation model proposed explicitly recognizes the linkage between the discrete decision (participate or not) and the continuous decision (level of participation for enrollees). This approach yields a measure of willingness to accept payment for program participation that is not obtainable when level of participation alone is considered. A model using contingent valuation survey data assessing participation in the filter strip program in Michigan serves as an example.

Date: 1994
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