Modeling willingness to pay for land conservation easements: treatment of zero and protest bids and application and policy implications

Seong-Hoon Cho; Steven T. Yen; J. Michael Bowker; David H. Newman

doi:10.1017/s1074070800028108

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Modeling willingness to pay for land conservation easements: treatment of zero and protest bids and application and policy implications

Informally Refereed

Authors:

Seong-Hoon Cho, Steven T. Yen, J. Michael Bowker, David H. Newman

Year:

2008

Type:

Scientific Journal

Station:

Southern Research Station

DOI:

https://doi.org/10.1017/s1074070800028108

Source:

Journal of Agricultural and Applied Economics, 40(1): 267-285

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Abstract

This study compares an ordered probit model and a Tobit model with selection to take into account both true zero and protest zero bids while estimating the willingness to pay (WTP) for conservation easements in Macon County, NC. By comparing the two models, the ordered/Unordered selection issue of the protest responses is analyzed to demonstrate how the treatment of protest responses can significantly influence WTP models. Both models consistently show that income and knowledge are positive and significant factors, while distance to poorer quality streams and duration of residency are negative and significant factors on WTP.

Keywords

censored dependent variable, conservation easement, protest bid, sample selection, WTP

Citation

Cho, Seong-Hoon; Yen, Steven T.; Bowker, J. Michael; Newman, David H. 2008. Modeling willingness to pay for land conservation easements: treatment of zero and protest bids and application and policy implications. Journal of Agricultural and Applied Economics, 40(1): 267-285