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.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
This parameter is directly estimated in the ML routine. It can be transformed to copula parameter as:
$$ \theta = \left\{ {\begin{array}{*{20}l} {\begin{array}{*{20}l} {({\text{e}}^{\theta *} - {\text{e}}^{ - \theta *} )/(^{\theta *} +\, {\text{e}}^{ - \theta *} )} \hfill \\ {{\text{e}}^{\theta *} } \hfill \\ {1 + {\text{e}}^{\theta *} } \hfill \\ {\theta *} \hfill \\ \end{array} } \hfill & {\begin{array}{*{20}l} \hfill {({\text{Gaussian}},{\text{FGM}},{\text{AMH}})} \\ \hfill {({\text{Plackett}},{\text{Clayton}})} \\ \hfill {({\text{Gumbel}},{\text{Joe}})} \\ \hfill {({\text{Frank}})} \\ \end{array} } \hfill \\ \end{array} } \right. $$
References
Ahn H, Powell J (1993) Semiparametric estimation of censored selection models with a nonparametric selection mechanism. J Econometrics 58(1):3–29
Amigues J, Boulatoff C, Desaigues B (2002) The benefits and costs of riparian analysis habitat preservation: a willingness to accept/willingness to pay contingent valuation approach. Ecol Econ 43:17–31
Baraki H (2010) Designing of cropping pattern in Mashhad plain based on energy use efficiency, water and economic factors. Phd dissertation, Department of Agricultural Economics, Ferdowsi University of Mashhad
Brethour C, Weersink A (2001) An economic evaluation of the environmental benefits from pesticide reduction. J Agric Econ 25:219–226
Cosslett S (1993) Semiparametric estimation of a regression model with sample selectivity. Nonparametric and semiparametric methods in econometrics and statistics. Cambridge University Press, Cambridge, pp 175–197
Cuyno CM, Norton GW, Rola A (2001) Economic analysis of environmental benefits of integrated pest management: a Philippine case study. J Agric Econ 25:227–233
Genius M, Strazzera E (2011) Applying copula approach to sample selection modelling. Appl Econ 1–28
Hasebe T (2013) Copula-based maximum-likelihood estimation of sample-selection models. Stata J 13(3):547–573
Hasebe T, Vijverberg W (2012) A flexible sample selection model: a GTL-Copula approach. IZA discussion paper series, 70
Heckman J (1979) Sample selection bias as a specification error. Econometrica 47(1):153–161
Hoffmann R, Kassouf AL (2005) Deriving conditional and unconditional marginal effects in log earning equations estimated by Heckman procedure. Appl Econ 37(11):1303–1311
Khodaverdizadeh M, KavoosiKelashemi M, Hayati B, Molaei M (2009) Estimation of recreation value and determining the factors effective in visitors’ WTP for Saint Stepanus church using the Heckman two-stage and CV methods. World Appl Sci J 7(4):543–551 (in Persian)
Kong F, Xiong K, Zhang N (2014) Determinants of farmers’ willingness to pay and its level for ecological compensation of Poyang Lake Wetland, China: a household-level survey. Sustainability 6:6714–6728
Lee LF (1982) Some approaches to the correction of selectivity bias. Rev Econ Stud 49:355–372
Lee LF (1983) Generalized econometric models with selectivity. Econometrica 51:12–507
Rasul G, Thapa G (2004) Sustainability of ecological and conventional agricultural systems in Bangladesh: an assessment based on environmental, economic and social perspectives. Agric Syst 79:327–351
Smith MD (2003) Modelling sample selection using Archimedean Copulas. Econometrics J 6:99–123
Zuehlke T, Zeman A (1991) A comparison of two-stage estimators of censored regression models. Rev Econ Stat 73(1):185–188
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer Nature Singapore Pte Ltd.
About this chapter
Cite this chapter
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
Download citation
DOI: https://doi.org/10.1007/978-981-13-6283-5_7
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-13-6282-8
Online ISBN: 978-981-13-6283-5
eBook Packages: Economics and FinanceEconomics and Finance (R0)