Valuing Farmland Protection with Choice Experiments That Incorporate Preference Heterogeneity: Does Policy Guidance Depend On the Econometric Fine Print?

Robert Johnston and John Bergstrom

No 61140, 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado from Agricultural and Applied Economics Association

Abstract: Although mixed logit models are common in stated preference applications, resulting welfare estimates can be sensitive to minor changes in specification. This can be of critical relevance for policy and welfare analysis, particularly if policymakers are unaware of practical implications. Drawing from an application to agricultural conservation in Georgia, this paper quantifies the sensitivity of welfare estimates to common variations in mixed logit specification and assesses practical implications for policy guidance. Results suggest that practitioners may wish to reevaluate modeling and reporting procedures to reflect the welfare and policy implications of common but often unnoticed variations in model specification.

Keywords: Environmental Economics and Policy; Land Economics/Use; Research Methods/ Statistical Methods (search for similar items in EconPapers)
Pages: 37
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea10:61140

DOI: 10.22004/ag.econ.61140

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