Modelling outcome‐related risk in choice experiments1. (14th June 2013)

• Record Type: Journal Article
• Authors: Glenk, Klaus; Colombo, Sergio
• Is Part Of: Australian journal of agricultural and resource economics. Volume 57:Number 4(2013:Oct.)
• Page Start: 559
• Page End: 578
• Publication Date: 2013-06-14
• Subjects: choice modelling -- climate change -- outcome‐related risk -- soil carbon sequestration -- supply uncertainty -- willingness to pay; Agriculture -- Economic aspects -- Periodicals; Agriculture -- Environmental aspects -- Periodicals; Natural resources -- Periodicals; Agriculture -- Economic aspects -- Australia -- Periodicals; Natural resources -- Australia -- Periodicals; 338.1
• DOI: 10.1111/1467-8489.12012
• Languages: English
• ISSNs: 1364-985X

Abstract

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.