TY - JOUR
T1 - A choice modelling case study on climate change involving two-way interactions
AU - Riera, Pere
AU - Giergiczny, Marek
AU - Peñuelas, Josep
AU - Mahieu, Pierre Alexandre
PY - 2012/12/1
Y1 - 2012/12/1
N2 - Choice Modelling applications can be designed to estimate main effects only or multiple-way interactions between attributes. It has been reported that higher order effects generally account for less than 10% of the choice explanation. Nevertheless, the amount of applications testing for interactions among attributes in environmental valuation is very limited. This paper reports a Choice Modelling exercise valuing climate change impacts on plant cover, land erosion and fire risk in Spanish shrublands. Two out of three two-way interactions were found significant and to account for more than 20% of the choice model explanation. Their contribution to the log-likelihood value was comparable to the one of the main effects variables. Moreover, accounting for second order interactions significantly altered the estimates of the implicit prices of attributes compared to the main effects specifications. © 2012 Department of Forest Economics, Swedish University of Agricultural Sciences, Umeå.
AB - Choice Modelling applications can be designed to estimate main effects only or multiple-way interactions between attributes. It has been reported that higher order effects generally account for less than 10% of the choice explanation. Nevertheless, the amount of applications testing for interactions among attributes in environmental valuation is very limited. This paper reports a Choice Modelling exercise valuing climate change impacts on plant cover, land erosion and fire risk in Spanish shrublands. Two out of three two-way interactions were found significant and to account for more than 20% of the choice model explanation. Their contribution to the log-likelihood value was comparable to the one of the main effects variables. Moreover, accounting for second order interactions significantly altered the estimates of the implicit prices of attributes compared to the main effects specifications. © 2012 Department of Forest Economics, Swedish University of Agricultural Sciences, Umeå.
KW - Choice modelling
KW - Higher order effects
KW - Two-way interactions
U2 - 10.1016/j.jfe.2012.07.004
DO - 10.1016/j.jfe.2012.07.004
M3 - Article
SN - 1104-6899
VL - 18
SP - 345
EP - 354
JO - Journal of Forest Economics
JF - Journal of Forest Economics
IS - 4
ER -