Comparing Serial,and Choice Task Stated and Inferred Attribute Non‐Attendance Methods in Food Choice Experiments

A number of choice experiment (CE) studies have shown that survey respondents employ heuristics such as attribute non‐attendance (ANA) while evaluating food products. This paper addresses a set of related methodological questions using empirical consumer data from a CE on poultry meat with sustainability labels. First, it assesses whether there are differences in terms of marginal willingness to pay estimates between the two most common ways of collecting stated ANA (serial and choice task level). Second, it validates the self‐reported ANA behaviour across both approaches. Third, it explores the concordance of stated methods with that of the inferred method. Results show that WTP estimates from serial‐level data differ from those from choice task‐level data. Also, self‐reported measures on choice task ANA are found to be more congruent with model estimates than those for serial ANA, as well as with inferred ANA.     

Stated Attribute Non‐attendance in Successive Choice Experiments

Attribute non‐attendance in choice experiments affects willingness‐to‐pay (WTP) estimates and therefore the validity of the method. A recent strand of literature uses attenuated estimates of marginal utilities of ignored attributes. Following this approach, we propose a generalisation of the mixed logit model, whereby the distribution of marginal utility coefficients of a stated non‐attender has a potentially lower mean and lower variance than those of a stated attender. Model comparison shows that our shrinkage approach fits the data better and produces more reliable WTP estimates. We further find that while reliability of stated attribute non‐attendance increases in successive choice experiments, it does not increase when respondents report having ignored the same attribute twice.     

Stated and Inferred Attribute Attendance Models: A Comparison with Environmental Choice Experiments

There is increasing evidence that respondents to choice experiment surveys do not consider all attributes presented in the choice sets. Not accounting for this ‘attribute non‐attendance’ leads to biased parameter estimates, and hence biased estimates of willingness to pay. Various methods exist to account for non‐attendance in the analysis of choice data, with limited agreement as to which method is ‘best’. This paper compares modelling approaches that can account for non‐attendance, based on stated and inferred attribute non‐attendance. Respondents' stated non‐attendance is incorporated in the specification of multinomial and mixed logit models. Inference of non‐attendance is based on equality constrained latent class models. Results show that model fit is significantly improved when attribute non‐attendance is taken into account, and that welfare estimates are lower when incorporating non‐attendance. The inference based on equality constrained latent class models provides the best model fit. There is little concordance between stated and inferred non‐attendance, suggesting that respondents may not answer attendance statements truthfully.     

Using Attribute Importance Rankings Within Discrete Choice Experiments: An Application to Valuing Bread Attributes

We present a new Bayesian econometric specification for a hypothetical Discrete Choice Experiment (DCE) incorporating respondent ranking information about attribute importance. Our results indicate that a DCE debriefing question that asks respondents to rank the importance of attributes helps to explain the resulting choices. We also examine how mode of survey delivery (online and mail) impacts model performance, finding that results are not substantively affected by the mode of survey delivery. We conclude that the ranking data are a complementary source of information about respondent utility functions within hypothetical DCEs.     

Choice of Rice Production Practices in Ghana: A Comparison of Willingness to Pay and Preference Space Estimates

Rice has been identified as an important food security crop in Ghana. However, there is a production deficit and new technologies to reduce the deficit are not widely adopted. Although poor adoption by farmers’ is often linked to constraints such as access to information, farmers’ perceptions of the technologies are also important. We apply an advanced discrete choice experiment to evaluate farmers’ preferences for rice production practices. Specifically, we generate willingness to pay (WTP) estimates using willingness to pay space (WS) and compare these with values from the indirect or preference space (PS) method. Our modelling also accounts for the effects on WTP estimates of farmers’ stated attribute importance (SAI) information. Empirical results from WS and PS models reveal that on average, farmers value higher yields and are negatively affected by higher risk of crop failure and labour requirements. Comparing the performance of the two models, we find the WS model provides a superior fit to our data and reduces the likelihood of producing implausible WTP estimates. Further, SAI inclusion did not produce much variation in our WTP estimates.     

Valuing the Impacts of An Invasive Biological Control Agent: A Choice Experiment on the Asian Ladybird in France

Initially used as a biological control against aphids, the Asian ladybird has become highly invasive in many regions, including Europe. While biological control is usually considered as an environmentally‐friendly alternative to chemical pesticides in controlling pests in crops, there is growing concern that these environmental benefits could be outweighed by the negative consequences of the invasion. These include (i) biodiversity losses as populations of native ladybirds suffer from intraguild predation and competition for resources; (ii) human nuisance in houses, including risks of allergy and (iii) potential losses to wine‐growers. We provide an economic valuation of environmental and private characteristics affected by the Asian ladybird's invasion. We conduct a discrete choice experiment among a representative sample of the French population. Our results show that the consequences of the Asian ladybird's introduction do affect significantly the population's welfare. Among these, the impact on biodiversity through the threat on native species appears to be a significant concern.     

Design Factors Influencing Willingness‐to‐Pay Estimates in the Becker‐DeGroot‐Marschak (BDM) Mechanism and the Non‐hypothetical Choice Experiment: A Case of Biofortified Maize in Zambia

Two of the experimental methods used to estimate willingness‐to‐pay (WTP) for a non‐market good, the Becker‐DeGroot‐Marschak (BDM) mechanism and the non‐hypothetical choice experiment (nHCE) often lead to significantly different WTP estimates, complicating the choice between the methods. In Zambia the same group of researchers used both techniques to evaluate WTP for orange maize, which provides more vitamin A than other varieties. This provided an opportunity to analyse the sources of the difference. In the BDM experiment, one group of respondents was provided with more training opportunities than the other, and made higher bids. Accounting for lexicographic behaviour in the nHCE reduced the estimated WTP. These two design factors together resulted in a decrease in the WTP difference for orange maize (1,279–632 ZMK) although the difference remains statistically significant. More training was also shown to eliminate the effects of different orders in which maize varieties were presented.     

Heterogeneous Demand and Supply for an Insurance‐linked Credit Product in Kenya: A Stated Choice Experiment Approach

We employ a discrete choice experiment to elicit demand and supply side preferences for insurance‐linked credit, a promising market‐based tool for managing agricultural weather risks and providing access to credit for farmers. We estimate preference heterogeneity using primary data from smallholder farmers and managers of lenders/insurers combined with household socio‐economic survey data in Kenya. We analyse the choice data using maximum simulated likelihood and Hierarchical Bayes estimation of a mixed logit model. Although there are some similarities, we find that there is conflicting demand and supply side preferences for credit terms, collateral requirements, and loan use flexibility. We also analyse willingness to buy and willingness to offer for farmers and suppliers, respectively, for the risk premium for different attributes and their levels. Identifying the preferred attributes and levels for both farmers and financial institutions can guide optimal packaging of insurance and credit providing market participation and adoption motivation for insurance‐bundled credit product.     

Consumer Benefits of Labels and Bans on GM Foods—Choice Experiments with Swedish Consumers

The European Union has been relatively cautious about using biotechnology in food production. A label regime combined with the right of individual member states to ban introduction of new genetically modified (GM) strains means that GM food products in effect are banned in many countries. We show how it is possible to empirically test whether a ban can be motivated by reference to potential negative externalities. This is followed up by results from a choice experiment. We cannot reject the hypothesis of equal WTP for a ban and a labeling scheme.     

Factors influencing farmers’ participation in contractual biodiversity conservation: a choice experiment with northern Australian pastoralists

Private landholders’ contributions to biodiversity conservation are critical in landscapes with insufficient formal conservation reserves, as is the case in Australia's tropical savannas. This study reports results from a discrete choice experiment conducted with pastoralists and graziers across northern Australia. The experiment was designed to explore the willingness of pastoralists and graziers to sign up to voluntary biodiversity conservation contracts. Understanding preferences for contractual attributes and preference heterogeneity were additional objectives. Such knowledge can increase effectiveness and efficiency of conservation programs by informing contract design, negotiation and administration. Random parameter logit modelling showed that of contract attributes, conservation requirement, stewardship payment, contract duration and flexibility in contract conditions significantly influenced choices. Land productivity was a significant factor as were attitudes. There was significant heterogeneity of preferences for all contract attributes. Models were run for best–worst scaling responses and the first preferences subset, with the latter model deemed superior. Latent class modelling distinguished four classes of decision‐makers and illustrated different decision heuristics. Conservation investment strategies, which offer farmers contract options that meet biodiversity requirements while accommodating heterogeneous attribute preferences, are likely to lead to increased participation rates. Complementary suasion efforts are also required which espouse the benefits that pastoralists derive from biodiversity and participation in voluntary conservation contracts.     

The Effects of Non‐tariff Measures on Agri‐food Trade: A Review and Meta‐analysis of Empirical Evidence

The increasing policy interest and academic debates on non‐tariff measures (NTMs) has stimulated a growing literature on how NTMs affect agri‐food trade. The empirical literature provides contrasting and heterogeneous evidence, with some studies supporting the ‘standards as catalysts’ view, and others favouring the ‘standards as barriers’ explanation. To the extent that NTMs can influence trade, understanding the prevailing effect, and the motivations behind one effect or the other, is a pressing issue. We review a large body of empirical evidence on the effect of NTMs on agri‐food trade and conduct a meta‐analysis to disentangle potential determinants of heterogeneity in estimates. Our findings show the role played by the publication process and by study‐specific assumptions. Some characteristics of the studies are correlated with positive significant estimates, others covary with negative significant estimates. Overall, we found that the effects of NTMs vary across types of NTM, proxies used for NTMs, and levels of detail of studies. The estimated effects are also influenced by methodological issues and publication processes.     

Linking Consumers’ Food Choice Motives to their Preferences for Insect‐based Food Products: An Application of Integrated Choice and Latent Variable Model in an African Context

Consumers’ attitudes, perceptions, personalities and motives play important roles in shaping their food choices. These factors are not fully observed by analysts, so they should be treated as latent variables. A number of economic studies treat such variables as direct measures of consumers’ food choice behaviour, even though this might introduce measurement error and endogeneity bias. We investigate the latent link between consumers’ preferences and food choice motives (FCMs) in an African context. We use an integrated choice and latent variable (ICLV) model specification for data analysis to recognise the latent nature of the FCMs and address the measurement and bias problems. The data originate from an incentivised discrete choice experiment conducted in Kenya to elicit consumers’ preferences for insect‐based foods. Our findings show that consumers’ preferences and choices are influenced by their latent motivational orientation. The results illustrate the benefit of the ICLV approach in accounting for consumers’ latent preference constructs in food choice and valuation research.     

The Impacts of Elicitation Context on Stated Preferences for Agricultural Landscapes

Statements of willingness to pay (WTP) have been shown to be dependent upon the framing of the hypothetical market. In this paper we investigate the effects of variations in the timing and location of choice experiment questions concerned with conservation of a UK national park, as research involving measurement of psychological well‐being suggests potential differences for the same individual dependent upon when and where preferences are elicited. We apply the choice experiment technique to the valuation of changes in upland agricultural and semi‐natural landscapes in the Peak District National Park in the UK, to investigate whether timing and location of elicitation (context) affects the value associated with changes in ecosystem services under different management regimes. Four treatments are employed – using the same sample of individuals answering the same choice scenarios – to measure WTP ex‐ante (off site), in situ (on site), and ex‐post at two different time intervals (off site). We show that our on‐site (in situ) treatment generates very different estimates of preferences than any of the off‐site treatments. That stated preferences associated with environmental goods are so context dependent may have implications for the use of stated preferences in policy analysis in terms of identifying how environmental policy is funded and the divergence in value attributed to sampling different populations.     

Seafood Purchasing Preferences of Hawaii Chefs: Comparing Actual Purchase to Stated Preferences From Conjoint Choice Experiment

This study investigated if Hawaii chefs use wild seafood products over farm-raised and local over imports. Chefs were asked to estimate their purchases for shrimp, tuna, mahimahi, and salmon. Chefs were also asked to choose products within conjoint choice experiments to indirectly determine their preferences. Price is the most important attribute for shrimp. Hawaii chefs would prefer wild and farm-raised local, fresh shrimp if it were competitively priced over low-priced imported and frozen alternatives. This result can be useful for the shrimp aquaculture industry in Hawaii. The low importance of production method when purchasing seafood should be further explored.     

Analysing the Agricultural Costs and Non‐market Benefits of Implementing the Water Framework Directive

Implementation of the Water Framework Directive (WFD) represents a fundamental change in the management of water in Europe with a requirement that member states ensure ‘good ecological status’ for all water bodies by 2015. Agriculture is expected to bear a major share of WFD implementation costs as it is compelled to reduce the emission of diffuse water pollutants. The research outlined here comprises interdisciplinary modelling of agricultural land use, hydrology and consequent water quality effects to consider both agricultural costs and the non‐market recreational use (and potentially non‐use) values that implementation of the Directive may generate. A theme throughout the research is the spatial distribution of the costs and benefits of WFD implementation, which is addressed through the use of GIS techniques in the modelling of agricultural land use, the integration of land use and hydrological models, and the estimation, aggregation and transfer of the economic value of the benefits.     

Combining Stated and Revealed Preferences on Typical Food Products: The Case of Dry‐Cured Ham in Spain

An extensive body of research concerns the valuation of EU certification schemes of quality based on the origin of food products. This literature focuses mainly on stated preferences (SPs) and reported behaviours by the consumers. We combine consumers’ SPs, obtained through a conjoint ranking experiment, with revealed preferences (RP), obtained through a retail scanner database. We evaluate SPs as predictors of RP, and investigate whether SPs and RPs are consistent. Dry‐cured ham in Spain is chosen as the anchor product, mainly because of its broad customer base and long history of origin certification. A ‘trick’ nested logit model with non‐identical and identical samples of consumers is estimated to answer each of the objectives. Results show that, irrespective of the analysed samples, SP can predict general market trends and choices but not accurately predict market shares, and that consumers’ actual behaviour is partly consistent with their SPs. We find that consumers prefer ham produced in Teruel, compared with unspecified Spanish origin. Quality Certification and a Distributor’s Brand are preferred over the alternatives of no quality label or identified with a brand owned by the producer. Interestingly, SPs for the Quality Certification and the distributor’s brand lead to an over‐ and under‐estimation, respectively, of the market share.     

Heterogeneous Consumer Preferences for Nanotechnology and Genetic‐modification Technology in Food Products

This study investigates heterogeneous consumer preferences for nanofood and genetically‐modified (GM) food and the associated benefits using the results of choice experiments with 1,117 US consumers. We employ a latent class logit model to capture the heterogeneity in consumer preferences by identifying consumer segments. Our results show that nano‐food evokes fewer negative reactions compared with GM food. We identify four consumer groups: ‘Price Oriented/Technology Adopters’, ‘Technology Averse’, ‘Benefit Oriented’, and ‘New Technology Rejecters’. Each consumer group has a distinctive demographic background, which generates deeper insights into the diversified public acceptance of nano‐food and GM food. Our results have policy implications for the adoption of new food technologies.     

The Role of Non‐Use Values in Dairy Farmers’ Willingness to Accept a Farm Animal Welfare Programme

Choice experiments about a hypothetical farm animal welfare (FAW) programme were presented to a sample of randomly selected German dairy farmers. Based on the theory of social interactions, it was hypothesised that the probability of participating in the programme would increase with (i) the ease of implementing programme attributes on the farm, (ii) perceived use values such as increased milk yield, and (iii) stated levels of non‐use existence values derived from improved animal welfare conditions and extrinsically motivated non‐use values from enhanced prestige among relevant peer groups. It was found that non‐use existence values were negatively related to programme acceptance because relatively high personal standards may not be in line with the programme design and may make the programme seem unnecessary. In addition, the intention of enhancing public acceptance of dairy farming appeared to have an influence on some farmers’ willingness to accept the programme, which can be explained by the relevance of social interactions among peers in the context of farmers’ provision of FAW.