Lumpy Heterogeneity in Groundwater Service Values and Time Preferences

Authors

• Kent F. Kovacs, University of Arkansas, Little Rock
• Heather Snell, In4mation Insights, Needham MA
• Brandon R. McFadden, University of Arkansas, FayettevilleFollow
• Rodolfo M. Nayga Jr., Texas A & M University - College Station

Document Type

Article

Publication Date

2-2025

Keywords

policy group models, groundwater management

Abstract

From a choice experiment about groundwater management, we consider time preferences and groundwater service values through sociodemographic characteristics using a model called the discounted latent class model. A policy-motivated latent class has a higher income, greater familiarity with an aquifer, and more concern for the risks that groundwater decline poses to people and the environment. A business-as-usual latent class has a conservative ideology. Exponential discounting is preferred, and the discount rate is larger for the policy group than the business-as-usual group. Other models we use include the discounted mixed logit model and the discounted logit-mixed logit model.

Citation

Kent F. Kovacs, Heather Snell, Brandon R. McFadden, Rodolfo M. Nayga Jr. Lumpy Heterogeneity in Groundwater Service Values and Time Preferences Land Economics Feb 2025, 101 (1) 71-88; DOI: 10.3368/le.101.1.040524-0033

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.