22 pages, Many stated preference studies have shown that individuals’ attitudes play an important role in explaining their behaviour and helping to disentangle preference heterogeneity. When responses to attitudinal questions are introduced into discrete choice models, a suitable approach that corrects for potential endogeneity must be adopted. We use a discrete choice experiment to analyse the preferences of residents regarding the use of agri-environmental practices in the peri-urban area of Milan (Italy). A detailed analysis of these preferences is relevant for policymakers as farmers on the peri-urban fringe are often asked to provide environmental services to urban-dwellers. We apply a latent class model that we extend to include indicators of individuals’ attitudes towards the relationship between agriculture and the environment. Besides the application of the control function approach to deal with endogeneity, our main contribution is the use of a refutability test to check the exogeneity of the instruments in the agri-environmental setting. Our results show that attitudinal indicators help to disentangle the preference heterogeneity and that the respondents’ willingness-to-pay distribution differs according to the indicators’ values.
10 pages., Via online journal., In 18 East German municipalities, nine of them with a planned pig production site and the other nine with an existing pig production site, a survey was carried out on the factors influencing the acceptance of pig production. The influencing factors examined were the personal attitude on particular aspects of pig production, socio-demographic characteristics, the personal involvement in local decision-making, the size of livestock and the production technology. As a result, existing production sites are perceived more positively than planned sites, without any influence of size and production technology. The difference may be explained by the fact that planned sites are evaluated in respect to economic arguments as jobs and income (market goods), while existing sites are rather evaluated in respect to environmental factors (public goods). For new investments the results lead to the recommendation to emphasize its economic aspects, to integrate the investor socially in the rural community and to apply technology that prevents pollution for the neighborhood. More importantly, the results show the shortcomings of a “top down” approach and the indispensability of endogenous resources in regional development.
