This paper proposes using a control function to correct for endogeneity in recreation demand models. The control function approach is contrasted with the method of alternative specific constants (ASCs), which has been promoted in prior research. As an application, we consider the case of travel...

Different kinds of endogeneity problems in Random Utility Models of recreation demand have been studied in previous literature. Some site characteristics, like facilities, could be endogenous in an economic sense due to the interplay of supply and demand. That is, it may be that more popular...

This paper examines the willingness of farmers to participate in hypothetical programs that would pay them to adopt cropping practices that enhance provision of ecosystem services from agriculture. A survey of 3,000 Michigan corn and soybean farmers elicited willingness to adopt four sets of...

A stated choice model is used to estimate wetland mitigation preferences. In a split sample mail survey, a main effects design is compared to a randomized design. Although randomized designs estimate main effects less efficiently, several policy relevant interactions were found to be...

When environmental quality enters random utility models linearly, welfare measures are convex in quality. The convexity is partly due to site substitution, and it has policy implications for whether changes in quality should be concentrated or diffuse. These functional form effects are...

Payment-for-environmental-services (PES) programs are the focus of increasing attention globally. While existing PES programs can observe who participates and who does not, the reasons for nonparticipation can be opaque. Taking advantage of a unique stated preference data set that includes a...

Payment-for-Ecosystem-Services (PES) programs are gaining appeal as flexible approaches to inducing the voluntary provision of ecosystem services (ES). Farmers, who manage agricultural ecosystems, provide important nonmarket ecosystem services to the public by their choice of production inputs...

The public demand for ecosystem services measured by willingness to pay (WTP) in contingent valuation studies provides important information for designing Payment-for-Ecosystem-Service (PES) programs. However, the hypothetical markets for contingent valuation and respondents’ unfamiliarity...