Attribute processing in environmental choice analysis: implications for willingness to pay

Danny Campbell (), Victoria Lorimer, Claudia Aravena and W. George Hutchinson

No 91718, 84th Annual Conference, March 29-31, 2010, Edinburgh, Scotland from Agricultural Economics Society

Abstract: Data from a discrete choice experiment is used to investigate the implications of failing to account for attribute processing strategies (APSs). The research was designed to elicit the economic benefits associated with landscape restoration activities that were intended to remediate environmental damage caused by illegal dumping activities. In this paper we accommodate APSs using an equality constrained latent class model. By retrieving the conditional class membership probabilities we recover estimates of the weights that each respondent assigned to each attribute, which we subsequently use ensure unnecessary weight is not allocated to attributes not attended to by respondents. Results from the analysis provide strong evidence that significant gains in models fit as well as more defensible and reliable willingness to pay estimates can be achieved using when the APSs are accounted for.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 17
Date: 2010-03-29
New Economics Papers: this item is included in nep-dcm, nep-env and nep-tur
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aesc10:91718

DOI: 10.22004/ag.econ.91718

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