Applications of Simulation Methods in Environmental and Resource Economics (The Economics of Non-Market Goods and Resources Book 6)

Simulation methods are revolutionizing the practice of applied economic analysis. This volume collects eighteen chapters written by leading researchers from prestigious research institutions the world over. The common denominator of the papers is their relevance for applied research in environmental and resource economics. The topics range from discrete choice modeling with heterogeneity of preferences, to Bayesian estimation, to Monte Carlo experiments, to structural estimation of Kuhn-Tucker demand systems, to evaluation of simulation noise in maximum simulated likelihood estimates, to dynamic natural resource modeling. Empirical cases are used to show the practical use and the results brought forth by the different methods. Discrete Choice Models in Preference Space and Willingness-to-Pay Space....Pages 1-16 Using Classical Simulation-Based Estimators to Estimate Individual WTP Values....Pages 17-33 The Cost of Power Outages to Heterogeneous Households....Pages 35-54 Capturing Correlation and Taste Heterogeneity with Mixed GEV Models....Pages 55-75 Analysis of Agri-Environmental Payment Programs....Pages 77-95 A Comparison Between Multinomial Logit and Probit Models....Pages 97-116 Mixed Logit with Bounded Distributions of Correlated Partworths....Pages 117-134 Kuhn-Tucker Demand System Approaches to Non-Market Valuation....Pages 135-157 Hierarchical Analysis of Production Efficiency in a Coastal Trawl Fishery....Pages 159-185 Bayesian Approaches to Modeling Stated Preference Data....Pages 187-207 Bayesian Estimation of Dichotomous Choice Contingent Valuation with Follow-Up....Pages 209-221 Modeling Elicitation Effects in Contingent Valuation Studies....Pages 223-246 Performance of Error Component Models for Status-Quo Effects in Choice Experiments....Pages 247-273 DPSIM Modelling: Dynamic Optimization in Large Scale Simulation Models....Pages 275-293 An Exposition of Structural Estimation of Discrete Dynamic Decision Processes....Pages 295-315 Monte Carlo Methods in Environmental Economics....Pages 317-340 Gaussian Quadrature Versus Simulation for the Estimation of Random Parameters....Pages 341-353 Simulation Noise and the Estimation of Land Use Decisions in Kenya....Pages 355-371 Simulation methods are revolutionizing the practice of applied economic analysis. This work covers various topics ranging from discrete choice modeling with heterogeneity of preferences, to Bayesian estimation, to Monte Carlo experiments, to structural estimation of Kuhn-Tucker demand systems