2. Materials and Methods
2.1. Case Study Background
“Experience shows that it would cost about $450 OR $2,200 (including fencing) per ac ($1,110 OR $5,400 (including fencing) per ha) to install permanent riparian buffers along streams. Given that developers could pay for part, all or more than your costs with the water quality trading, how much would be your willingness to accept to install riparian buffers? ______$/ac.”
“After thinking it a little more, are you confident with your earlier answer that you would be willing to accept $ X to install the permanent buffers?”
2.2. Computing the Adoption Premium
3.1. The Adoption Premium
3.2. Profile of Farmers in the Jordan Lake Study
3.3. The Role of Information
3.4. Trading Cost
4. Farmer’s Willingness to Bear Some Costs
“In your opinion, why would other farmers be willing to accept less than the cost of installation (for the conservation practice)?”
“In your opinion, why would other farmers need to accept more than their cost of conservation practice installation?”
Conflicts of Interest
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|Before Stated Installation Cost||After Stated Installation Cost|
|No Answer||2||2||No Answer||1||1|
|Years of Residency||−0.017||0.008||−2.12 **|
|Type of Buffer||0.37||0.16||2.37 **|
|Size of Farm||−0.00042||0.0004||−1.05|
|Stated Installation Cost (dummy variable)||2.083||0.26||8.12 **|
|Pseudo R 2||0.4||LR Chi-Square||20.5|
|Log Likelihood||−68.78||Prob > Chi-Square||0.000|
|Livestock Farming *|
|WTA ($)||Trading Cost ($)||Trading Cost Rate||Adoption Premium ($)||Adoption Premium Rate|
|28,858 per ha |
(11,757 per ac)
|20,802 per ha |
(8,475 per ac)
|2.59||18,912 per ha |
(7,705 per ac)
|Crop Farming **|
|WTA ($)||Trading Cost ($)||Trading Cost Rate||Adoption Premium ($)||Adoption Premium Rate|
|12,920 per ha |
(5,264 per ac)
|9,190 per ha |
(3,744 per ac)
|2.46||8,802 per ha |
(3,586 per ac)
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