Discontinuity of preferences in choice experiments: the impact on the evaluationof the agri-environmental premium

María Espinosa-Godet, Jesús Barreiro-Hurlé

Abstract

In the choice experiment framework it is assumed that respondents consider all the attributes when making their choices. However, there is evidence that respondents may not consider all the attributes. This study investigates the impact derived from the discontinuity of preferences in the agri-environmental premium estimations related to the cultivation of rain fed forage crops. There is an improvement in the model goodness of fit when considering the discontinuity of preferences, however it only influences significantly in one of the four non-monetary attributes that defined the agri-environmental scheme for the sub sample of farmers non-participants and in two attributes for the sub-sample of participants.

Keywords

Choice experiment; Agri-environmental schemes; Random parameter logit model; Implicitprices; Discontinuity of preferences

Subject classification

C25, C52, Q12, Q18.

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References

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