Agricultural Economics
H. Amirnejad; S. Hosseini
Abstract
IntroductionFlood is a phenomenon that occurs almost in most regions of the world and causes significant damage to human life and ecosystem. Forests are one of the necessary things to prevent damages caused by floods, but the conditions are not enough. Therefore, it is important to use an economic tool ...
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IntroductionFlood is a phenomenon that occurs almost in most regions of the world and causes significant damage to human life and ecosystem. Forests are one of the necessary things to prevent damages caused by floods, but the conditions are not enough. Therefore, it is important to use an economic tool to manage and protect the Hyrcanian forest ecosystem in order to reduce flood damage in the coming years. Currently, there are various tools in this field that must be carefully chosen and it is not possible to use one tool in all ecosystems of the world. Payment for forest ecosystem services (PES) is one of the economic tools of forest management and protection by providing direct incentives to stakeholders to improve its ecosystem functions and services. Therefore, in comparison with other market instruments of environmental protection such as environmental taxes which may cause a reduction in the production of various economic sectors and as a result reduce the income of producers and finally lose their motivation. The Payment for Forest Ecosystem Services (PES) program not only does not reduce income, but also increases income for the beneficiaries of forest ecosystem services and thus creates incentives. Payment for ecosystem services is a two-way transaction and is completely voluntary. In this transaction, there must be at least one buyer and one ecosystem service provider provided that the ecosystem service provider continues to offer that service. The logic of PES schemes is that the beneficiaries (people who benefit from ecosystem services) are asked to protect the providers of ecosystem services (such as public or private organizations) who work to protect, restore and natural ecosystem management is to pay for better management and protection of these ecosystems. This payment may take place at the local, national and global level. Studies show that among the various factors influencing the occurrence of floods, excessive exploitation of forests and changes in the use of forest lands are the main causes of floods. But few studies have been conducted on the role of PES plans to protect natural ecosystems to prevent natural hazards such as floods. Therefore, considering the importance and extraordinary value of natural forests in the region in reducing flood damage, the purpose of this study is to investigate the preferences of residents affected by recent floods in Mazandaran province in the form of payment for ecosystem services (PES) scheme and to identify the factors affecting the acceptance of PES scheme to reduce flood damage by conservation the Hyrcanian forests ecosystem using the choice modeling approach (Choice Experiment (CE) and the multinomial econometric model. The Choice Experiment is one of the methods of valuing stated preferences, which is very suitable for analyzing the importance of different features of a product or a policy.Materials and MethodsTo achieve this goal, the Choice Experiment method and multinomial logit econometric model were used. The features studied in this method include forest management, watershed management, land use management (preventing forest land use change), payment method, contract duration and payment amount (price). Also, the statistical population of the study includes the affected-floods residents in three parts of the center, east and west of Mazandaran province. Research data were obtained by field survey, random sampling and 110 choice experiment questionnaires in summer 2020. Socio-economic variables in the study include age, gender, job, education, PES awareness, expenses and income of the affected-floods residents.Results and ConclusionBased on the study results, the willingness to pay of households affected by floods for conserving the Hyrcanian forest ecosystem to reduce flooding through land use management is as follows: for changing the status quo, it is 36,140 Rial per month; for improvement status, it is 68,910 Rial per month. Additionally, for contract duration and payment method, the willingness to pay is 150,150 Rial per month. The study findings also indicate that affected-floods residents prefer to make cash payments in the long-term to conserve the forest ecosystem and mitigate flooding. Furthermore, when examining the impact of various socio-economic variables on the residents' willingness to pay, it was found that age, gender, education, expenses, income, and awareness of Payment for Ecosystem Services (PES) have a direct positive effect on their willingness to pay. Considering these results, it is recommended that forest conservation programs in the Northern provinces place importance on the mentioned factors to encourage people's participation in forest conservation projects. This will facilitate the implementation of the PES scheme and enhance the success of forest conservation efforts.
Agricultural Economics
H. Hajizadeh; A. Fallah; S. Hosseini
Abstract
Introduction The forest ecosystem is one of the most important natural resources of any country, which provides various functions and services for human beings. Therefore, recognizing the functions and services related to the forest and determining the most appropriate valuation method for them ...
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Introduction The forest ecosystem is one of the most important natural resources of any country, which provides various functions and services for human beings. Therefore, recognizing the functions and services related to the forest and determining the most appropriate valuation method for them is of particular importance. Also, the continuation of using the functions and services of forests requires programs to protect and improve their environmental status. This issue itself requires the participation of stakeholders and finding out about their preferences for forest ecosystem protection and valuing them. But estimating the real value of some functions, ecosystem services and developing appropriate mechanisms to obtain their economic value requires economic valuation methods using non-market methods. Although there are different interpretations of the economic valuation methods of functions and services forest ecosystems but among the various valuation methods, economists have more emphasis on the value of money that is estimated through stated preferences. One of these methods to estimate the stated preferences is the Choice Experiment. Materials and Methods The purpose of this study is to evaluate the preferences and willingness to pay (WTP) of native communities for the conservation of Shiadeh and Diva forest ecosystems of Babol city located in Mazandaran province using the evaluation Choice Experiment (CE) method. The Choice Experiment is a subset of the choice modeling method and the stated preference method family. Choice modeling is based on Lancaster's value theory and random utility theory. Also, Shiadeh and Diva forests are one of the green areas with all kinds of forest covers, plants and valuable trees and as one of the useful and valuable resources for the residents of the region. These forests play an important role in the lives of the forest dwellers, herdsmen and villagers on its outskirts. Also, Shiadeh and Diva forests because of the presence of natural forest ecosystem, beautiful landscapes, unique vegetation and diverse animal species, as well as special human and cultural effects, are always one of the centers of interest. This forest ecosystem is very valuable and can provide services for the residents of this area. Therefore, in this study, the statistical population of the study includes 150 native households in the villages of Shiadeh and Diva forests. In the study, research data were completed and collected by field sampling in the summer of 2020 by native communities of the region. Socio-economic variables include eight variables: age, marriage, gender, job, household size, education, income and household expenditure. The effect of these variables on the WTP of communities was surveyed. In this study, the WTP of individuals for the forest ecosystems conservation was estimated by the CE method and conditional logit model. To validate the conditional logit model, the independence of irrelevant alternatives (IIA) was performed using Hassman-McFadden statistic. Also, a multinomial logit model was used to investigate the effect of socio-economic variables on the WTP.Results and Discussion In this study, the reliability of the questionnaire was calculated using Cronbach's alpha test and was obtained as α=0.87, which indicates its reliability. WTP of each household for the conservation of Shiadeh and Diva forest ecosystem services, including regulatory, habitat and information services, from the status quo to the improvement situation was equal to 1020.68, 630.25 and 1026.49 thousand Rials per month, respectively. The study results showed that WTP native communities for the forest ecosystem conservation to provide regulatory services and its improvement is the first priority, and habitat and information services took the next positions.Conclusion The aim of this study was to evaluate the preferences and willingness to pay (WTP) of native communities for the conservation of Shiadeh and Diva forest ecosystem using the evaluation Choice Experiment (CE) method. In general, it can be concluded that regulatory services was the most important forest ecosystem services in terms of native communities in the region. Also, the final WTP of native communities' estemated at 33329.04 Rials per year (2777.42 Rials per household per month).Therefore, considering the great importance of the regulatory services of Shiadeh and Diwa forest ecosystem, such as water protection, soil protection, carbon sequestration and climate regulation, etc., it is suggested that relevant institutions such as the country natural resources and watershed management organization, the general department of natural resources of the province Mazandaran, regional water organization and agricultural Jahad organization allocate the necessary investments for the protection of Shiadeh and Diwa forests, and implementation of projects such as forest management projects, water protection, soil protection, species protection flora and fauna of the region projects, etc.
Agricultural Economics
M. Taslimi; H. Amirnejad; S.M. Mojaverian; H. Azadi
Abstract
Introduction: The final energy consumption per capita in Iran in the agricultural sector is 3.4, as well for household sector is 2, besides the commercial and public sectors are 1.6, and transportation and industry are 1.4 times the global average. This is due to low efficiency in operation, high energy ...
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Introduction: The final energy consumption per capita in Iran in the agricultural sector is 3.4, as well for household sector is 2, besides the commercial and public sectors are 1.6, and transportation and industry are 1.4 times the global average. This is due to low efficiency in operation, high energy consumption, as well as the use of energy goods and services. The use of renewable energy in the agricultural sector, while increasing the security of energy supply, will reduce global warming, stimulate economic growth, create jobs, and increase per capita income and social justice and environmental protection in all areas. The purpose of this study is to investigate farmers' preferences for using solar energy in Sari.Materials and Methods: The Choice Experiment methods allow researchers to focus on valuing final changes as multidimensional features rather than discrete changes. Choosing between options encourages respondents to examine their preferences in detail related to different management programs. The Choice Experiment test approach consists of several steps, which include designing the Choice Experiment test, determining the sample size and method of data collection, estimation process, and modeling the Choice Experiment test. Designing a Choice Experiment test consists of five important steps which are defining attributes, determining the relevant levels, conducting an experimental design, constructing Choice sets, and measuring preferences. After determining the criteria affecting the prioritization of renewable energy, liketechnical, environmental, economic, social, and political criteria, in order to investigate the willingness to Pay of Sari farmers, a test questionnaire was designed. The criteria obtained from the review of prioritization of renewable energy were considered as the attributes of the Choice Experiment and the price attribute was added to the above criteria. A total of six technical, economic, social, political, environmental, and price attributes were considered to investigate farmers' willingness to pay. In the review of the studies and the current situation, the levels of each of the attributes were determined. To determine the levels of price attribute, these points were considered; the price of agricultural electricity per kilowatt-hour is 383 Rials, which was approximately 400 Rials for the current situation.Results and Discussion: To investigate the farmers' preferences for using solar energy, 98 questionnaires of farmers in Sari were completed in September 2019. Each questionnaire included 8 choice set cards and each card included three options, based on which, the number of observations in Sari is equal to 2352 observations. The purpose of this study is to investigate the preferences of farmers in Sari for the use of solar energy. For this purpose, the Multinomial logit, the Random parameter logit, the latent class, and the Random parameter logit latent class are used. Based on the results of the Multinomial logit method, environmental and price attributes at the level of one percent and economic attribute at the level of five percent are statistically significant, but political, social, and technical attributes are not statistically significant. The Alternative-specific Constants (ASC) in the first and second options are not statistically significant. Based on the results of the Random Parameter Logit estimation method, environmental, economic and price attributes are statistically significant at the level of one percent. Technical, political, and social attributes are not statistically significant, which shows that farmers do not make a significant difference between these two attributes. The Alternative-specific Constants (ASC) are significant in the first option at the level of five percent and the second option at the level of one percent. The results of latent class estimation show that in the first class, environmental, economic, political, social, and price attributes are statistically significant at the level of one percent and technical attribute at the level of ten percent. The Alternative-specific Constants (ASC) are statistically significant at the level of one percent in the first class. In the second class, technical attribute at the level of five percent and environmental attribute at the level of ten percent are significant, besides other attributes in the second class are not statistically significant. The most sensitive class is the first class and farmers of the second class are considered the base class. The results obtained from the Bayesian and Akaike criteria of different classes showed that the two classes have the lowest values of BIC and AIC criteria and the class is appropriate. After determining the appropriate class, the model was estimated. The results of model estimation were calculated by the Latent Class Random Parameter logit method. In the first class, environmental attributes and price are significant at the level of one percent and economical attributes at the level of five percent. Also, the Alternative-specific Constants (ASC) is significant at the level of one percent, but, in the second class, the attributes are not statistically significant. Technical, environmental, economic, political, social, and price attributes, as well as the option of status quo or the Alternative-specific Constants (ASC) in the second class, do not affect farmers' utility due to the lack of statistical significance.Conclusion: A comparison of the results obtained from the four methods shows that the highest value of the estimated coefficient for environmental attributes was in the latent class method and the lowest value was in the multinomial logit method; Comparison of fitted methods shows that the highest Log-likelihood is related to the latent class random parameter logit method and the lowest value is related to the multinomial logit method. Accordingly, the highest value of Akaike and Bayesian criteria is related to the multinomial logit method and the lowest value is related to the latent class random parameter logit method which is better than other methods according to the good fit criterion.
Agricultural Economics
P. Tonakbar; H. Amirnejad; S. Shirzadi Laskookalayeh
Abstract
Introduction: Among the various available tools in the field of natural resources and environmental management, the payment for ecosystem services (PES) is one of the market-based methods that is considered worldwide to protect the environment and ecosystem. PES is an important method for effective management ...
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Introduction: Among the various available tools in the field of natural resources and environmental management, the payment for ecosystem services (PES) is one of the market-based methods that is considered worldwide to protect the environment and ecosystem. PES is an important method for effective management of natural resources and public goods and one of the tools for managing degraded ecosystems and related environmental and economic services. Considering that Sefidrood is considered as the most important and valuable source of agricultural water supply and aquatic environment in Guilan province, and also the water quality of this important river is in a bad and very bad condition, this study was conducted using PES economic tools through payments by rice consumers in Guilan province to rice farmers and thus encouraging them to take environmentally friendly measures (organic agriculture) to reduce pollution of the Sefidrood River. Materials and Methods: This research was conducted using a choice experiment method. In our CE, each PES alternative is described by a set of attributes that include distribution of payments, contract duration, implementing organization, monitoring times, possibility to cancel and payments. First, to investigate the effect of different attributes of PES scheme on rice consumers' willingness to pay and their marginal utility, a conditional logit model was used to compare the results of random parameter logit model and latent class models with a base model. Then, the RPL and LC model was used to further investigate the invisible heterogeneity that exists in the behavior of respondents. The RPL model is an advanced model that allows attributes coefficients to change randomly among respondents. Therefore, instead of estimating a fixed coefficient for each attribute, two coefficients are estimated, which together describe the distribution of heterogeneous preferences of the respondents for this attribute.Results and Discussion: To confirm the CL model, the independence of irrelevant alternatives assumption was performed using the Hausman-McFadden test. Given that the value of chi-square statistics has become large and significant, therefore, the CL model is not suitable for investigating the effect of attributes on consumer’s willingness to pay, and more advanced models should be used. For this reason, RPL and LC models are estimated. According to the results of the RPL model, the highest willingness to pay is related to the monitoring times therefor indicating that consumers are willing to pay 1347 Tomans for more monitoring. The amount of willingness to pay for the duration of contract and distribution of payments is equal to 1326 and 914 Tomans, respectively, which indicates if the contracts are short-time and also more payments are made to low-income rice farmers, the willingness to pay will increase to 1326 and 914 Tomans, respectively. Based on the results of the LC model, in the first class, except for the contract duration, all other attributes were not statistically significant. In the second class, the distribution of payments, the contract duration and the monitoring times with a positive sign and the implementing organization with a negative sign are significant. Class membership coefficients for organic rice consumers indicate that the likelihood of being in second class depends significantly on the respondents' age, gender, and level of education.Conclusion: The results of RPL and LC models confirm the existence of heterogeneity in the preferences of organic rice consumers. Therefore, appropriate methods can be used to differentiate organic products and thus improve the utility of consuming these products. Consumers were also more inclined to have a short-time and high monitoring scheme, this result is not unexpected due to the novelty of the scheme. Therefore, it is recommended to start short-time schemes with high monitoring. Consumers also tended to make more payments to low-income rice farmers, so it is recommended that lower-income rice farmers be given priority in implementing the PES scheme. The results of both model showed that the distribution of payments and monitoring times had the highest priority for consumers in choosing the PES scheme, respectively. Therefore, in order to increase the participation of consumers in such schemes, it is recommended to include these attributes in the schemes. Also, although PES is not designed as a tool to reduce poverty, it can increase the incomes of low-income rice farmers and help their livelihoods. Given that such schemes have not yet been implemented in Iran, it is suggested that in order to increase consumer participation, various levels of attributes should be provided to the respondents.
R. Amirhajloo; A. Fatahi Ardakani; M. Fehresti; A. Neshat
Abstract
Introduction: The natural resources in any country are considered as the important infrastructures for economic development; this mainly applies to developing countries. Climate change and imbalance of rainfall over the year has made shortage of water a fundamental crisis in Esfahan Province; therefore, ...
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Introduction: The natural resources in any country are considered as the important infrastructures for economic development; this mainly applies to developing countries. Climate change and imbalance of rainfall over the year has made shortage of water a fundamental crisis in Esfahan Province; therefore, providing strategies and instructions which are in accordance with climate conditions of the country will significantly help to get out of the present critical situation. In this regard, dam-building projects have been one of the strategies which have been used to face these crises. Lack of attention to consequences of human interventions in environment and lack of considering these damages in considering pros and cons of man-made structures will cause reduction of natural resources and will increase the growing process of dam-building in the country. Prevention of damages to the environment can increase construction of dams in the country.
Materials and Methods: The purpose of this project is environmental analysis of one of the 10 dams of the country using comprehensive management program, so by estimating the damage and its cost, in addition to making managers aware, it is possible to announce maximum support of people for ecosystem management. Results in cost-profit analyses of developing Zayanderood Dam and its watering and also authorities' attention to more investment on the most important performance in view of the people of this province. This method can also be used to reform national accounts. In this method, first, created values of Zayanderood River flowing are considered and then each performance was evaluated. Improving environmental features of building a dam includes reducing public recreational areas (because the river does not flow), destroying some plant species around the river, Gavkhuni Swamp, animal species (such as fishes, water and migrant animals) and also destroying Gavkhuni Swamp (which in general because of no more flowing of the river Zayanderood and lack of watering of this swamp by Zayanderood river, it has been totally dry and destroyed) has been estimated. Similarly, choice experiment was employed for estimation of economic value of recreational areas, some plant species around the river, Gavkhuni Swamp, animal species by means of D Optimal design and distributions of 150 questionnaires in river ward zayanderood district during various seasons (2016) and the nested logit model.
Results and Discussion: The results of this research indicated that total value of recreational areas, some plant species around the river, Gavkhuni Swamp, and animal species were estimated 1176,610,852, and 566 thousand rials respectively. Among services damaged of zayanderood rangeland ecosystem, the maximum value belongs to recreational areas and of protection Gavkhuni Swamp. Ignoring and destruction can be the cause of not enough knowledge about the value of the local and natural ecosystem. Sometimes these effects may decrease the remedy of justification of collusion, and cannot evaluate composing dam and gains for local people. All the payment appetency of the family to improve all the properties, computed 320 thousand rials in this year. This research has prepared for estimating environmental effects of composing zayanderood dam and estimating effects of different sides of dam. Final results of the final orientation of the interest of families in paying each environmental feature of Zayanderood Dam determine the environmental damage of this dam and showed that mwtp (marginal willingness to pay) was positive for every recreational, vegetative species, animal species and Gavkhuni Swamp and this means that improving these features increases the average satisfaction obtained by using these dams. Regarding the results of this study, significant amounts of interest in payment for different features of the river showed the strong will of people to exit these conditions of the river.
Conclusions: Based on the results of this research, it can be argued that increasing the amount of attention to the various characteristics of the Zayandehrood River is due to the strong determination of people to get out of the current situation. Thus, one of the strategies for improving the environmental conditions of river in the current situation is the general participation of the people of the region. On the other hand, through the development of a coherent program to allocate water between Isfahan and Chaharmahal and Bakhtiari provinces, and also improving water use efficiency, especially in the agricultural sector which is a major consumer of water, the rate of decline in water can be controlled. Obviously, the present research is a preliminary study and a comprehensive assessment of the profit-to-cost ratio is necessary for providing more accurate information on the cost of constructing the dam(s).The finding indicated that the study area had high importance and value therefore it is necessary for accurate administration and planning to increase awareness of the people in the study area. Also the results showed that the studied case zone has a high importance so planning to decrease the remnant of environment is very necessary. User-friendly and comprehensive studies (especially environmental) are essential for increasing economic plans.
M. Salehnia; B. Hayati; M. Molaei
Abstract
Introduction: The degradation and destruction of natural resources is being considered as an economic issue; because when these resources are destroyed or lost, significant values are destroyed because some of which are irreversible. The major difference between the science of economy and other subjects ...
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Introduction: The degradation and destruction of natural resources is being considered as an economic issue; because when these resources are destroyed or lost, significant values are destroyed because some of which are irreversible. The major difference between the science of economy and other subjects such as ecology on the definition of the “value” is the emphasis of economy on the preferences. Differing sensitivities are the basis for targeted communication programs and promotions. As consumer preferences and sensitivities become more diverse, it becomes less and less efficient to consider the society at the aggregate level. In this research, we will show how hierarchical Bayesian approach is ideal for these problems as it is possible to produce individual -level parameter estimates. Urmia Lake in the northwestern corner of Iran is one of the largest permanent hyper saline lakes in the world and the largest lake in the Middle East. The lake’s surface area has been estimated to be as large as 5585 km2. However, since 1995 it has declined and was estimated to be only 926 km2 in 2014 based on satellite data. Considering no significant trend in the drought pattern, Urmia Lake's observed physiographic changes may be attributable to the overuse of renewable water resources and unbalanced development of agricultural sector. Therefore this research emphasizes the active role of local communities in the conservation and revitalization of Urmia Lake and analyzes the data from the choice experiment using hierarchical Bayes.
Materials and Methods: Choice-based conjoint (discrete choice) measurement has attracted more attention over the last years. Many researchers assert that choice-based tasks are more realistic for respondents than ratings- or rankings-based conjoint questions. However, choice-based conjoint data does not contain as much information per unit of respondent effort as traditional conjoint analysis. There are different ways to analyze the choice data. Hierarchical Bayes is the newest estimation method. The mathematical specification of these model is a Bayesian hierarchical model in which, broadly speaking, a different vector of utility is defined for each respondent. The distribution of these utilities in the whole population has some specified forms, usually normal. Hierarchical Bayes allows for heterogeneity at a respondent's level by specifying different utilities for each respondent. This leads to a greater improvement in simulation techniques: simulation conducted using aggregate or clustered models often lead to the biased results. Its ability to borrow information from other respondents to stabilize part worth estimation for each individual is particularly valuable for choice data. Applying HB to choice data allow analysts largely to solve IIA problems. Four attributes consist of animal habitat, climate regulation and prevention from salt storms, aesthetic and ecotourism, and education and research were considered in this study. The required data have been collected from 13 districts located in the northwest of Iran and Exogenous stratified random sampling applied as the sampling strategy.
Results and Discussion: Estimating willingness to diagnosed climate regulation and prevention from salt storms as the most important attribute from the view of the respondents. Animal habitat, aesthetic and ecotourism, and education and research were in the next places of people’s willingness to pay priorities. Hence, from the public’s point of view, mentioned attributes in the same order, should have most importance and priority in the management scenarios. Individual-level parameters of the Bayes model showed the highest variance for the full restoration of the climate, which implies the existence of conflicting preferences in this attribute. This indicates although some variables are important, they also fluctuate in a wide range of variations and the probability of their selection is different among people. Certainly, hierarchical bayes provides information far beyond the average utility and applying this information will give experts a better understanding of the distribution of preferences. Another important subject to know is that even with four sets of choices in each questionnaire and the need for people to respond to all of them, there is still some uncertainty about the part worths of the individual level.
Conclusions: An important point about model estimation is the diminutive presence of individual explanatory variables. The Bayesian model is recommended to be based on just those respondents’ features that are directly related to the part worths and preferences in choosing goods. It is also recommended that, in order to attract higher rate of contributions, variables with low variation, such as reviving the current status of climate and full restoration of aesthetic and ecotourism which are generally accepted, should be used.
B. Hayati; M. Salehnia; M. Molaei
Abstract
Introduction: In recent years, most environmental evaluation studies have managed the heterogeneity of preferences among individuals. Differing sensitivities are the basis for targeted communication programs and promotions. As consumer preferences and sensitivities become more diverse, it becomes less ...
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Introduction: In recent years, most environmental evaluation studies have managed the heterogeneity of preferences among individuals. Differing sensitivities are the basis for targeted communication programs and promotions. As consumer preferences and sensitivities become more diverse, it becomes less and less efficient to consider the society in the aggregate. In this research, we will show how multilevel latent class approach is ideal for these problems as it is possible to produce group -level parameter estimates. Investment in the ecological health of the Great Lakes basin is pivotal to its long-term economic success. Lake Urmia in the northwestern corner of Iran is one of the largest permanent hyper-saline lakes in the world and the largest lake in the Middle East. The lake’s surface area has been estimated as large as 6100 km2 but since 1995 it has generally been declining and was estimated from satellite data to be only 926 km2 in 2014. Worldwide Experiences indicate that sustainability of wetlands depends primarily on the extent to which local communities are active in their management. Local communities should, therefore, be fully engaged in the conservation and management of the Lake and its satellite wetlands. Hence, we will conduct a choice experiment for investigating public preferences on the nonmarket economic benefits of Lake Urmia restoration.
Materials and Methods: Cluster analysis is the evolution of aggregate estimation. Clustering algorithms find groups of individuals with similar tastes among the whole sample. The preferences of the individuals are estimated in a semi-individual way by assuming that the respondent utility is equal to the cluster utility, allowing for heterogeneities across segments of respondents, but not within the cluster. The fundamental assumption of standard LC models is that observations are independent. However, this assumption is often violated for example the analysis of populations that are hierarchically structured. The multilevel model can be used to define LC models for nested data. Four attributes consist of animal habitat, climate regulation and prevention from salt storms, aesthetic and ecotourism, and education and research were considered. The required data have been collected from 13 districts located in the northwest of Iran and Exogenous stratified random sampling applied as sampling strategy.
Results and Discussion: The estimated model identified three lower-level groups of individuals, each with their own structure of preferences. The first class is a representation of the average individual with no highly stressed motivations and show greater variability in the responses. For class 2, the most important attribute is the climate regulation and prevention of salt storms and the cost is the least important attribute for them. It seems that the second class has an environmental concerns than others. The third class often chooses those options with no gain in environmental levels even if there is deterioration in environmental conditions. Generally, this class shows opposite opinions. The estimation process detected two grand classes in which the covariates were the factor scores from the factor analysis. Grand class 2 is a little bigger than grand class 1, and most people are in lower-level class 2, the group with the highest proportion of high well-educated young people. In this paper, a novel feature named scale-adjusting was considered and two scale classes were determined. Scale class 1 refers to lower error respondents which more than half of the people belongs to. Whereas, scale class 2 is included of less certain or higher error respondents. To summarize, people from the closer districts to Lake Urmia were classified into one specific grand class with considerable homogeneity.
Conclusion: Human society is complex and this complexity and its manifestations impact the preferences of individuals in potentially many ways that currently are not well-understood, but may be associated with preference heterogeneity. Thus, it seems logical to suggest that not only socioeconomic characteristics influence consumer choices, but geophysical characteristics of their surrounding environment also shape their attitudes, behaviors, and beliefs. In particular, results suggest that it may be possible to incorporate many additional individual different measures in models to capture observable heterogeneity in systematic (deterministic) utility components instead of leaving them, exclusively, to random components. Future work should be directed toward better understanding of the complex interplay of environmental choices and market choices. The results also suggest that we can explain a large part of this preference heterogeneity in the systematic (deterministic) component of utility, which in turn may help to manage a geographical area with greater citizen participation and acceptance.
M. Salehnia; B. Hayati; M. Ghahremanzadeh; M. Molaei
Abstract
The lake Urmia and satellite wetlands was selected as a demonstration site for the UNDP/GEF/DOE conservation of Iranian Wetlands Project. This project aims to demonstrate reduction of the major threats of this wetland protected area coordinated through an integrated management plan. We developed a choice ...
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The lake Urmia and satellite wetlands was selected as a demonstration site for the UNDP/GEF/DOE conservation of Iranian Wetlands Project. This project aims to demonstrate reduction of the major threats of this wetland protected area coordinated through an integrated management plan. We developed a choice experiment to examine public preferences and elicit their willingness to pay on improvements in lake’s indicators toward good environmental status. A pilot choice experiment study was administered in Urmia municipality and the data were analyzed using mixed logit model. The results revealed that residents of this municipality may strongly prefer improvement in water quantity and are willing to pay significant amounts (26000 RLs per household per year) to promote current water level to the high level. Furthermore, water quality, numbers of flamingos and Artemia stock (23000, 14670 and 11330 RLs per household per year respectively) were identified as next important issues that warrant additional management attention.