Social cooperation in the context of integrated private and common land management
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Social cooperation in the context of integrated private and common land management. / Kassahun, Habtamu Tilahun; Thorsen, Bo Jellesmark; Swait, Joffre; Jacobsen, Jette Bredahl.
I: Environmental and Resource Economics, Bind 75, 2020, s. 105–136.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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T1 - Social cooperation in the context of integrated private and common land management
AU - Kassahun, Habtamu Tilahun
AU - Thorsen, Bo Jellesmark
AU - Swait, Joffre
AU - Jacobsen, Jette Bredahl
PY - 2020
Y1 - 2020
N2 - Several discrete choice experiment studies have investigated issues in the design of incentive programs to enhance the provision of ecosystem services. In these studies, ownership of land is usually private, and landowners make decisions independently of each other. However, the assumption of independence may be invalid when decision making involves a spatial setting and social networks. This study presents a new approach that accounts for social cooperation and preference interdependence across farmers in a land management context with mixed ownership. We formulate an econometric model of implicit choice set formation that accounts for (1) farmers’ expectations regarding mutual positive benefits from cooperation in an integrated land management system, and (2) the potential interdependence of preferences across farmers within the same socio-spatial group. We show that cooperation expectations matter for the decision of whether to engage in cooperative management and also for welfare estimates. Our model can identify sources of heterogeneities arising from cooperation expectations in ways that would not be possible using a reduced-form choice model. The assumption of independence should be checked routinely in similar settings to avoid potential endogeneity problems in discrete choice models when dealing with data that have a social-spatial dimension.
AB - Several discrete choice experiment studies have investigated issues in the design of incentive programs to enhance the provision of ecosystem services. In these studies, ownership of land is usually private, and landowners make decisions independently of each other. However, the assumption of independence may be invalid when decision making involves a spatial setting and social networks. This study presents a new approach that accounts for social cooperation and preference interdependence across farmers in a land management context with mixed ownership. We formulate an econometric model of implicit choice set formation that accounts for (1) farmers’ expectations regarding mutual positive benefits from cooperation in an integrated land management system, and (2) the potential interdependence of preferences across farmers within the same socio-spatial group. We show that cooperation expectations matter for the decision of whether to engage in cooperative management and also for welfare estimates. Our model can identify sources of heterogeneities arising from cooperation expectations in ways that would not be possible using a reduced-form choice model. The assumption of independence should be checked routinely in similar settings to avoid potential endogeneity problems in discrete choice models when dealing with data that have a social-spatial dimension.
KW - Choice set formation
KW - Common pool
KW - Ethiopia
KW - Hybrid choice
KW - Land management
KW - Latent variable
KW - Social interaction
KW - Social network
U2 - 10.1007/s10640-019-00390-3
DO - 10.1007/s10640-019-00390-3
M3 - Journal article
AN - SCOPUS:85076203748
VL - 75
SP - 105
EP - 136
JO - Environmental and Resource Economics
JF - Environmental and Resource Economics
SN - 0924-6460
ER -
ID: 232978270