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Modeling Willingness to Pay for Land Conservation Easements: Treatment of Zero and Protest Bids and Application and Policy Implications

Published online by Cambridge University Press:  26 January 2015

Seong-Hoon Cho ,
Steven T. Yen ,
J.M. Bowker  and
David H. Newman
Seong-Hoon Cho
Affiliation:
University of Tennessee
Steven T. Yen
Affiliation:
University of Tennessee
J.M. Bowker
Affiliation:
U.S. Department of Agriculture (USDA) Forest Service, Southern Research Station
David H. Newman
Affiliation:
Warnell School of Forestry and Natural Resources, The University of Georgia
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Abstract

This study compares an ordered probit model and a Tobit model with selection to take into account both true zero and protest zero bids while estimating the willingness to pay (WTP) for conservation easements in Macon County, NC. By comparing the two models, the ordered/unordered selection issue of the protest responses is analyzed to demonstrate how the treatment of protest responses can significantly influence WTP models. Both models consistently show that income and knowledge are positive and significant factors, while distance to poorer quality streams and duration of residency are negative and significant factors on WTP.

Keywords

censored dependent variableconservation easementprotest bidsample selectionWTPC25C42Q56
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 40 , Issue 1 , April 2007 , pp. 267 - 285
Copyright
Copyright © Southern Agricultural Economics Association 2008

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