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A non-parametric random effects model for the valuation of forest recreation services: An application to forest sites in Tuscany, Italy

Pellegrini, Andrea; Lombardi, Ginevra Virginia; Scarpa, Riccardo; Rose, John M

A non-parametric random effects model for the valuation of forest recreation services: An application to forest sites in Tuscany, Italy Thumbnail


Authors

Andrea Pellegrini

Ginevra Virginia Lombardi

John M Rose



Abstract

This study assesses individuals’ preferences for the use of forest sites for recreational purposes by means of the Logit Mixed Logit (LMNL) model (Train, 2016). The appeal of the LML is that the analyst need not assume any specific functional form for the mixing distributions of random preferences. The empirical analysis generates a data-driven non-parametric representation of individuals’ preference heterogeneity. We apply this approach to data collected using an unlabeled discrete choice experiment, consisting of three recreational options, two of which are two hypothetical forest sites. Forest destinations are described by means of six attributes: forest type, sign-posting, hiking time, access to rivers or lakes, wildlife watching hides for visitors and cost of access. The empirical findings reveal that the signpost for each trail is the attribute for which respondents are on average willing to pay the most (6.565€). Further evidence suggests that respondents have strong positive preferences for those forest sites that offer amenities such as wildlife watch hides and access to rivers or lakes. Finally, the histograms derived from the semi-parametric LML estimation reveal multimodality of random taste amongst respondents for different hypothetical forest sites

Citation

Pellegrini, A., Lombardi, G. V., Scarpa, R., & Rose, J. M. (in press). A non-parametric random effects model for the valuation of forest recreation services: An application to forest sites in Tuscany, Italy. The Australian Journal of Agricultural and Resource Economics,

Journal Article Type Article
Acceptance Date Jan 11, 2024
Online Publication Date Feb 2, 2024
Deposit Date Feb 27, 2024
Publicly Available Date Mar 11, 2024
Journal The Australian Journal of Agricultural and Resource Economics
Print ISSN 1364-985X
Publisher Wiley
Peer Reviewed Peer Reviewed
Public URL https://durham-repository.worktribe.com/output/2288282

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