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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:  07 April 2017

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

Copyright © Southern Agricultural Economics Association 2008

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