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Transfers of landowner willingness to accept: A convergent validity and reliability test using choice experiments in two Canadian watersheds
Author(s) -
Trenholm Ryan,
Lantz Van,
Haider Wolfgang,
Knowler Duncan
Publication year - 2019
Publication title -
canadian journal of agricultural economics/revue canadienne d'agroeconomie
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 37
eISSN - 1744-7976
pISSN - 0008-3976
DOI - 10.1111/cjag.12191
Subject(s) - willingness to pay , contingent valuation , willingness to accept , econometrics , equivalence (formal languages) , economics , reliability (semiconductor) , convergent validity , marginal utility , mixed logit , incentive , actuarial science , statistics , microeconomics , mathematics , logistic regression , psychometrics , power (physics) , physics , internal consistency , discrete mathematics , quantum mechanics
Abstract We examined the reliability and validity of transferring estimates of marginal willingness to accept and compensating surplus. In doing so, we used data from two case studies applying choice experiments to elicit landowner preferences for incentive‐based wetland conservation programs in two adjacent watersheds in Southern Ontario, Canada (Grand and Upper Thames Rivers in parallel in 2013). The choice experiment data were modeled in willingness to accept space using a generalized multinomial logit. Transfer reliability was investigated by calculating transfer errors, while validity was investigated by testing the equality of utility functions as well as by assessing the similarity of welfare estimates using traditional hypothesis tests and equivalence tests. The main findings are that transfers of willingness to accept are similar to existing transfers of willingness to pay in terms of validity and reliability. Additionally, a sensitivity analysis finds that including demographic variables in the choice model can lead to lower transfer validity though does not substantially affect reliability. Though further research is required, our results suggest that willingness to accept can be transferred as part of policy analyses.