Results for Quasi-hyperbolic Discounted Latent Class Model in Willingness-to-Pay Space
| A (Reference) | B | C | |
|---|---|---|---|
| Variable/Class | No Preferences | Policy Motivated | Business as Usual |
| Utility function | |||
| ASC1 (C/T) | 3.20 (4.51) | 19.21*** (5.84) | –4.49*** (1.68) |
| ASC2 (SWI) | 5.16 (4.77) | 21.02*** (5.82) | –4.11*** (1.61) |
| Buffer | 1.46 (2.74) | 18.89*** (7.66) | 0.547 (0.879) |
| Quality | 7.62 (10.11) | 18.96 (12.74) | 5.83* (3.39) |
| Jobs | 2.62 (4.39) | 15.26* (8.09) | 1.68 (1.58) |
| Infrastructure | –3.53 (6.64) | 13.50 (12.13) | 6.80* (3.51) |
| Wildlife | 0.033 (5.15) | 14.14 (11.66) | –1.15 (2.36) |
| Scale (λ) | 0.111 (0.077) | 0.659 (0.093) | 1.25 (0.27) |
| r | 0.159 (0.157) | 0.656*** (0.195) | 0.185*** (0.05) |
| β | 0.97 (0.961) | 0.96*** (0.194) | 0.98*** (0.168) |
| Class membership function | |||
| Constant | — | –4.96*** (1.04) | –2.49*** (0.683) |
| INC | — | 0.114*** (0.044) | 0.049 (0.041) |
| EDU | — | 0.243*** (0.089) | 0.329*** (0.081) |
| AQU | — | 0.316* (0.161) | –0.030 (0.160) |
| PRESS | — | –0.663* (0.368) | –0.828** (0.349) |
| EMP | — | –0.656** (0.265) | –0.543** (0.262) |
| IDEO | — | 0.014 (0.087) | 0.248*** (0.088) |
| GRISK | — | 0.442*** (0.086) | –0.029 (0.062) |
| Latent class probability | 0.22 | 0.44 | 0.34 |
| Log-likelihood | –3,489.96 | ||
| AIC | 7,071.93 | ||
| BIC | 7,360.12 | ||
| Observations | 11,655 | ||
Note: Standard errors are in parentheses. An average respondent has a yearly income of $49,991, a vocational/technical degree, knew what an aquifer was but did not know about the MRVA and its uses, and are mostly unaware of the pressure on the MRVA. Half are employed full- or part-time, have a middle-of-the-road ideology, and believe that the decline of the MRVA holds a medium risk to people. AIC = Akaike information criterion; BIC = Bayesian information criterion; C/T = cap and trade; SWI = surface water infrastructure.
*, **, *** Significance at the 10%, 5%, and 1% levels, respectively.