Determinates of farmer’s preference for watershed ecosystem services: The case of Belesa districts, Amhara region of Ethiopia”

Climate-Smart Conservation Agriculture, Farm Values and Tenure Security: Implications for Climate Change Adaptation and Mitigation in the Congo Basin

“…To examine how farmers under different tenure arrangements may choose their respective tropical farming systems we employ a robust analytical framework, the Mixed Logit, which is particularly appropriate in experiments of discrete choice behaviour (von Haefen and Domanski, 2018;Claassen, et al, 2013Claassen, et al, 2013, where farmers' behaviour may vary across agroecologies with heterogeneity in their preferences (Scarpa et al, 2021;Ahmed & Tesfye, 2021;Tesfaye et al, 2020). 2 The Mixed Logit relaxes the restrictive "independence from irrelevant alternatives" assumption and allows every individual to have their own preference, that is, it assumes that marginal utilities of individuals are not constant but vary across the sample (Hensher and Greene, 2003).…”

“…specialization in crops only. We identify choice equations by two variables: slope of terrain and walking time to district capital (Ahmed & Tesfye, 2021), which are excluded in the second stage regressions. Assuming η j 's are iid extreme value distributed, the choice probability can be written as the following integral over all possible values of γ j :…”

“…However, it is likely that the errors in equations ( 1) and (2) are correlated. Since profits are only observed for those farms that actually chose farm type 1, the selection bias should be corrected to obtain consistent estimates of climate parameters (Scarpa et al, 2021;Ahmed & Tesfye, 2021;Heckman, 1979). Following Claassen, et al (2013); Rigby et al, (2009), Alfnes (2004) as well as Dubin and McFadden (1984) for a multinomial choice, we assume the linearity condition with correlations among alternatives (r k ) summing up to zero.…”