Public preference for sustainable land use policies – Empirical results from multinomial logit model analysis

Public preferences for sustainable land use policy instruments and the motivations behind such preferences are important to make appropriate policies. Based on survey data (n = 309) from northeastern Somalia, we examined preferences for a set of land use policy instruments relative to no policy (i.e. the current status quo) and how cultural worldviews predict such preferences. We used a multinomial logit model to analyze the comparative evaluation of choices due to its interpretability and robustness to violations of normality. Overall, the results show that the respondents are likely to consent to all types of land use policy instruments relative to no policy and are more inclined to market-based and informational policy instruments. Specifically, preferences for regulatory policy instruments are positively associated with hierarchy and egalitarian worldviews and are negatively associated with fatalism and individualistic worldviews with only hierarchy and fatalism are significant. The market-based policy instrument is desirable to all cultural worldviews except fatalism, but only egalitarian and individual worldviews are significant. Preferences for informational policy instruments are positively associated with all cultural worldviews but only egalitarian worldviews showed a significant effect. Although there are some contradictions, these results are broadly consistent with the proposition of the cultural theory of risk. This study highlights that preferences for land use policies are heterogeneous with cultural worldviews mainly explaining the sources of this heterogeneity. It is evident that the respondents were willing to consent to land use policies relative to the status quo of no policy and indicates the need for concerted effort to reduce land degradation and deforestation in the country. We, therefore, recommend that policymakers incorporate the different ways that humans perceive and interpret social-environmental relations into policy decisions to achieve sustainable policy outcomes.

Saliência, relevância e determinância da carne bovina para os consumidores de Dracena (SP): uma nova abordagem metodológica

Resumo O objetivo deste estudo foi avaliar a saliência, a relevância e a determinância da carne bovina para os consumidores de Dracena (SP), por meio de dois métodos de mensuração. A saliência foi determinada pelo método de elicitação livre (EL), a relevância e a determinância foram calculadas pelo modelo multinomial logit, com dados de um experimento de escolha discreta de melhor-pior (EEDMP) do caso 2. Para comparar as determinâncias, as preferências também foram estimadas empregando-se o modelo Probit, mediante declarações de intenções de compra de carne bovina. No momento da compra, o atributo mais saliente é a cor da carne, ao passo que o sabor e a textura são os atributos mais salientes durante o consumo. Resultados mostram ainda discrepâncias entre a determinância obtida pelo EEDMP e pelas intenções de compra. As preferências expressadas pelas intenções de compra se aproximam mais da literatura especializada, o que indica que a carne saborosa, macia e vermelha brilhante é a mais apreciada entre os consumidores. Ainda é prematuro fazer recomendações do uso concatenado da EL e do EEDMP para estimar as três dimensões das características de um produto, como a carne bovina.

Logistic and multinomial-logit models: A brief review on their modifications and extensions

The work presents various techniques of the logistic and multinomial-logit modeling with their modifications. These methods are useful for regression modeling with a binary or categorical outcome, structuring in regression and clustering, singular value decomposition and principal component analysis with positive loadings, and numerous other applications. Particularly, these models are employed in the discrete choice modeling and the best-worst scaling known in applied psychology and socio-economics studies.

Omnichannel Assortment Optimization Under the Multinomial Logit Model with a Features Tree

Problem definition: We consider the assortment optimization problem of a retailer that operates a physical store and an online store. The products that can be offered are described by their features. Customers purchase among the products that are offered in their preferred store. However, customers who purchase from the online store can first test out products offered in the physical store. These customers revise their preferences for online products based on the features that are shared with the in-store products. The full assortment is offered online, and the goal is to select an assortment for the physical store to maximize the retailer’s total expected revenue. Academic/practical relevance: The physical store’s assortment affects preferences for online products. Unlike traditional assortment optimization, the physical store’s assortment influences revenue from both stores. Methodology: We introduce a features tree to organize products by features. The nonleaf vertices on the tree correspond to features, and the leaf vertices correspond to products. The ancestors of a leaf correspond to features of the product. Customers choose among the products within their store’s assortment according to the multinomial logit model. We consider two settings; either all customers purchase online after viewing products in the physical store, or we have a mix of customers purchasing from each store. Results: When all customers purchase online, we give an efficient algorithm to find the optimal assortment to display in the physical store. With a mix of customers, the problem becomes NP-hard, and we give a fully polynomial-time approximation scheme. We numerically demonstrate that we can closely approximate the case where products have arbitrary combinations of features without a tree structure and that our fully polynomial-time approximation scheme performs remarkably well. Managerial implications: We characterize conditions under which it is optimal to display expensive products with underrated features and expose inexpensive products with overrated features.

Determinants of Household Energy Choice for Cooking in Northern Sudan: A Multinomial Logit Estimation

Traditional biomass utilization is connected with negative environmental and human health impacts. However, its transition to cleaner cooking fuels is still low where the household’s fuels preferences play an important role in the process. To examine the factors that influence the household’s cooking fuel choice in Northern Sudan, a multinomial logit model (MNL) was used to analyze data collected from Kassala state in two selected districts, New Halfa and Nahr Atabara. The findings show that the most utilized fuels are still firewood and charcoal, which are used by 63.4% of all respondents. The results also revealed that socioeconomic factors have an impact on household fuel choice, where one additional unit of credit access may boost the possibility of choosing LPG by 22.7%. Furthermore, one additional level of education would reduce 5.4% of charcoal users while simultaneously raising 10% of current liquefied petroleum gas (LPG) users. Therefore, the study suggests initiating mobilization and training programs to raise awareness and encourage the usage of cleaner fuels. This study will provide policymakers with information on household cooking energy utilization while designing and developing policies related to energy. It will also contribute to the expanding body of literature concerning the transition to clean cooking fuels from traditional biomass.

The role of nontraditional lending for socially disadvantaged and financially stressed farmers

PurposeIn recent years, socially disadvantaged farmers and ranchers have increased their usage of nontraditional lending nearly converging to levels of usage observed for nonsocially disadvantaged groups. The purpose of this research is to explore explanations for this trend in lending utilization by socially disadvantaged farmers and ranchers by examining factors that influence credit usage and credit choice.Design/methodology/approachA multinomial logit is used to estimate the probability of loan choice given characteristics of the producer and farm.FindingsWhile not a causal analysis, the results suggest that farm characteristics, which differ between socially disadvantaged and nonsocially disadvantaged producers, are associated with a lower likelihood of credit usage by an average socially disadvantaged farmer. For those that have loans, socially disadvantaged producers exhibit higher debt-to-asset ratios and lower current ratios, characteristics that are typically associated with higher than observed probability of usage of loans other than nontraditional. Socially disadvantaged producers also have lower value of assets which is associated with a higher probability of nontraditional loan usage.Originality/valueThis research is among the first to examine loan usage of socially disadvantaged producers using nationally representative data.