Abstract
Integrated pest management (IPM) is a product protection system that is used for coordinated sustainable agriculture development . This paper uses the Heckman-copula approach to study Iranian farmers’ willingness to pay for IPM. IPM, which matches sustainable agriculture, is one of the best ways of protecting agricultural products. Therefore, the application of IPM can minimize the negative impact of pesticides on human beings and natural resources including wildlife. Heckman-copula is an efficient method to cope with the invalid assumption of joint normality in the maximum likelihood estimation of the sample-selection model . The copula approach frees us from this wrong assumption, so we can select appropriate marginal distribution for error terms in selection and outcome equations leading to more reliable results. The results of our study show that the logistic distribution of the selection equation and student’s t-distribution for the outcome equation are suitable. Moreover, the number of used IPM operations and knowledge of chemical pesticides’ risks have a positive and significant effect on the probability of WTP for IPM to avoid the negative effects of pesticides.
Keywords
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- 1.
This parameter is directly estimated in the ML routine. It can be transformed to copula parameter as:
$$ \theta = \left\{ {\begin{array}{*{20}l} {\begin{array}{*{20}l} {({\text{e}}^{\theta *} - {\text{e}}^{ - \theta *} )/(^{\theta *} +\, {\text{e}}^{ - \theta *} )} \hfill \\ {{\text{e}}^{\theta *} } \hfill \\ {1 + {\text{e}}^{\theta *} } \hfill \\ {\theta *} \hfill \\ \end{array} } \hfill & {\begin{array}{*{20}l} \hfill {({\text{Gaussian}},{\text{FGM}},{\text{AMH}})} \\ \hfill {({\text{Plackett}},{\text{Clayton}})} \\ \hfill {({\text{Gumbel}},{\text{Joe}})} \\ \hfill {({\text{Frank}})} \\ \end{array} } \hfill \\ \end{array} } \right. $$
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Pishbahar, E., Hosseinzad, J., Abedi, S., Bageri, P. (2019). Willingness to Pay for IPM: An Application of the Heckman-Copula Approach. In: Rashidghalam, M. (eds) Sustainable Agriculture and Agribusiness in Iran. Perspectives on Development in the Middle East and North Africa (MENA) Region. Springer, Singapore. https://doi.org/10.1007/978-981-13-6283-5_7
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