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Willingness to Pay for IPM: An Application of the Heckman-Copula Approach

  • Esmaeil PishbaharEmail author
  • Javad Hosseinzad
  • Sahar Abedi
  • Pariya Bageri
Chapter
Part of the Perspectives on Development in the Middle East and North Africa (MENA) Region book series (PDMENA)

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

Heckman-copula IPM Marginal distribution Willingness to pay 

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Copyright information

© Springer Nature Singapore Pte Ltd. 2019

Authors and Affiliations

  • Esmaeil Pishbahar
    • 1
    Email author
  • Javad Hosseinzad
    • 1
  • Sahar Abedi
    • 1
  • Pariya Bageri
    • 1
  1. 1.Department of Agricultural EconomicsUniversity of TabrizTabrizIran

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