Bayesian estimation of willingness-to-pay where respondents mis-report their preferences

We introduce a modified conditional logit model that takes account of uncertainty associated with mis-reporting in revealed preference experiments estimating willingness-to-pay (WTP). Like Hausman et al. [Journal of Econometrics (1988) Vol. 87, pp. 239-269], our model captures the extent and direction of uncertainty by respondents. Using a Bayesian methodology, we apply our model to a choice modelling (CM) data set examining UK consumer preferences for non-pesticide food. We compare the results of our model with the Hausman model. WTP estimates are produced for different groups of consumers and we find that modified estimates of WTP, that take account of mis-reporting, are substantially revised downwards. We find a significant proportion of respondents mis-reporting in favour of the non-pesticide option. Finally, with this data set, Bayes factors suggest that our model is preferred to the Hausman model.

Managing invasive alien species with professional and hobby farmers: insights from ecological-economic modelling

Biosecurity is a great challenge to policy-makers globally. Biosecurity policies aim to either prevent invasions before they occur or to eradicate and/or effectively manage the invasive species and diseases once an invasion has occurred. Such policies have traditionally been directed towards professional producers in natural resource based sectors, including agriculture. Given the wide scope of issues threatened by invasive species and diseases, it is important to account for several types of stakeholders that are involved. We investigate the problem of an invasive insect pest feeding on an agricultural crop with heterogeneous producers: profit-oriented professional farmers and utility-oriented hobby farmers. We start from an ecological-economic model conceptually similar to the one developed by Eiswerth and Johnson [Eiswerth, M.E. and Johnson, W.S., 2002. Managing nonindigenous invasive species: insights from dynamic analysis. Environmental and Resource Economics 23, 319-342.] and extend it in three ways. First, we make explicit the relationship between the invaded state carrying capacity and farmers' planting decisions. Second, we add another producer type into the framework and hence account for the existence of both professional and hobby fanners. Third, we provide a theoretical contribution by discussing two alternative types of equilibria. We also apply the model to an empirical case to extract a number of stylised facts and in particular to assess: a) under which circumstances the invasion is likely to be not controllable; and b) how extending control policies to hobby farmers could affect both types of producers. (C) 2008 Elsevier B.V. All rights reserved.

Pesticides, preference heterogeneity and environmental taxes

In this paper we present results from two choice experiments (CE), designed to take account of the different negative externalities associated with pesticide use in agricultural production. For cereal production, the most probable impact of pesticide use is a reduction in environmental quality. For fruit and vegetable production, the negative externality is on consumer health. Using latent class models we find evidence of the presence of preference heterogeneity in addition to reasonably high willingness to pay (WTP) estimates for a reduction in the use of pesticides for both environmental quality and consumer health. To place our WTP estimates in a policy context we convert them into an equivalent pesticide tax by type of externality. Our tax estimates suggest that pesticide taxes based on the primary externality resulting from a particular mode of agricultural production are a credible policy option that warrants further consideration.

Modelling effects of prolonged conditioning on dormancy and germination of Striga hermonthica

The impact of environment on the germination biology of the parasite was studied in the laboratory with seeds conditioned at various water potentials, urea concentrations and at 17.5 to 37.5°C for up to 133 days. Maximum germination was observed at 20 to 25°C. Water stress and urea suppressed maximum germination. The final percentage germination response to period of conditioning showed a non-linear relationship and suggests the release of seeds from dormancy during the initial period and later on dormancy induction. Germination percentage increased with increase in conditioning period to a threshold and remained stable for variable periods followed by a decline with further extension of conditioning time. The decline in germination finally terminated in zero germination in most treatments before the end of experimentation. The investigated factors of temperature, water potential and urea showed clear effects on the expression of dormancy pattern of the parasite. The effects of water potential and urea were viewed as modifying a primary response of seeds to temperature during conditioning. The changes in germinability potential during conditioning were consistent with the hypothesis that dormancy periods are normally distributed within seed populations and that loss of primary dormancy precedes induction of secondary dormancy. Hence an additive mathematical model of loss of primary dormancy and induction of secondary as affected by environment was developed as: G = {[Φ-1 (Kp+ (po+pnN+pwW) (T-Tb) t)]-[Φ-1 (Ks+ ((swW+sa)+sorT)t)]}[Φ-1(aT2+bT+c+cwW)].

Spatial econometric issues for bio-economic and land-use modelling

We survey the literature on spatial bio-economic and land-use modelling and assess its thematic development. Unobserved site-specific heterogeneity is a feature of almost all the surveyed works, and this feature, it seems, has stimulated significant methodological innovation. In an attempt to improve the suitability with which the prototype incorporates heterogeneity, we consider modelling alternatives and extensions. We discuss solutions and conjecture others.

Spatial econometric issues for bio-economic and land-use modelling

We survey the literature on spatial bio-economic and land-use modelling and assess its thematic development. Unobserved site-specific heterogeneity is a feature of almost all the surveyed works, and this feature, it seems, has stimulated significant methodological innovation. In an attempt to improve the suitability with which the prototype incorporates heterogeneity, we consider modelling alternatives and extensions. We discuss solutions and conjecture others.

The biocontrol fungus Pochonia chlamydosporia shows nematode host preference at the infraspecific level

A RAPD-PCR assay was developed and used to test For competitive variability in growth of the nematode biological control fungus Pochonia chlamydosporia. Saprophytic competence in soil with or without tomato plants was examined in three isolates of the fungus: RES 280 (J), originally isolated from potato cyst nematode (PCN) cysts; RES 200 (1) and RES 279 (S), both originally isolated from root knot nematode (RKN) eggs. Viable counts taken at 70 d indicated that I was the best saprophyte followed by S, with J the poorest. RAPD-PCR analysis of colonies from mixed treatments revealed that there was a cumulative effect of adding isolates to the system. This Suggested that the isolates did not interact and that they may occupy separate niches in soil and the rhizosphere. To investigate parasitic ability, soils were seeded with two isolates of the fungus: J and S, singly or in combination. Tomato or potato plants were grown in these soils; free of nematodes, or inoculated with PCN or RKN, and incubated for 77 d. The abundance of the PCN isolate J in PCN cysts was significantly greater than that of the RKN isolate S but in RKN egg masses, S was significantly more abundant than J. RAPD-PCR analysis of colonies from mixed treatments confirmed that J was more abundant than S ill PCN cysts whereas the converse was observed on RKN egg masses. This substantiates the phenomenon of nematode host preference at the infraspecific level of P. chlamydosporia and highlights its relevance for biological control of plant parasitic nematodes.

A structural time series approach to modelling multiple and resurgent meat scares in Italy

This paper exploits a structural time series approach to model the time pattern of multiple and resurgent food scares and their direct and cross-product impacts on consumer response. A structural time series Almost Ideal Demand System (STS-AIDS) is embedded in a vector error correction framework to allow for dynamic effects (VEC-STS-AIDS). Italian aggregate household data on meat demand is used to assess the time-varying impact of a resurgent BSE crisis (1996 and 2000) and the 1999 Dioxin crisis. The VEC-STS-AIDS model monitors the short-run impacts and performs satisfactorily in terms of residuals diagnostics, overcoming the major problems encountered by the customary vector error correction approach.