Abstract
In this study, we introduce information on outcome-related risk as an additional attribute in a choice model of preferences for a land-based climate change mitigation project. We provide a comprehensive comparison of different model specifications arising from different behavioural assumptions about the way that respondents process information on outcome-related risk within the choice task. We find significant differences between several specifications in terms of both model fit and WTP estimates. The behavioural assumptions made when choosing a particular model specification, and reasons that motivate them should be made explicit, and consequences of using different specifications should not be ignored.
| Original language | English |
|---|---|
| Pages (from-to) | 559 - 578 |
| Number of pages | 20 |
| Journal | Australian Journal of Agricultural and Resource Economics |
| Volume | 57 |
| Issue number | 4 |
| DOIs | |
| Publication status | First published - Oct 2013 |
Keywords
- Choice modelling
- Climate change
- Soil carbon sequestration
- Supply uncertainty
- Willingness to pay
