Heterogeneity in Willingness to Pay (WTP) through Estimation Methods in Discounted Mixed Logit (D-MXL), Discounted Logit-Mixed Logit (D-LML), and Discounted Latent Class (D-LCM) Models in a WTP Space
| Estimation Method | Scenario 1 (Status Quo Levels in 2050 and No Policy) | Scenario 2 (Current Levels in 2050 and C/T Policy) | Scenario 3 (Current Levels in 2050 and SWI Policy) |
|---|---|---|---|
| D-MXL (r = 0.491) | |||
| Mean | 116.4*** | 115.5*** | 149.9*** |
| (1.38) | (1.73) | (1.79) | |
| Low | –233.3*** | –210.1*** | –186.0*** |
| (2.72) | (2.82) | (2.83) | |
| High | 400.6*** | 396.0*** | 392.53 *** |
| (4.02) | (4.09) | (4.10) | |
| D-LML (r = 0.626; β = 0.613) | |||
| Mean | 133.3*** | 160.0*** | 193.5*** |
| (26.07) | (28.76) | (28.14) | |
| Low | 18.58 | –3.12 | 12.37 |
| (28.21) | (29.86) | (29.73) | |
| High | 236.37*** | 238.89*** | 286.07*** |
| (30.08) | (31.63) | (31.64) | |
| D-LCM (r = 0.430 [class A]; r = 0.188 [class B]) | |||
| Mean | 426.43*** | 430.00*** | 433.8*** |
| (34.92) | (35.12) | (35.10) | |
| Class A | 363.4*** | 383.16*** | 387.7*** |
| (35.32) | (35.48) | (35.50) | |
| Class B | 580.7*** | 544.67*** | 546.7 *** |
| (33.93) | (34.21) | (34.20) | |
Note: Standard errors are in parentheses. Scenario 1 supposes no change from current levels by 2050 without a policy; scenarios 2 and 3 suppose no change from current levels by 2050 with the cap-and-trade (C/T) policy and surface water infrastructure (SWI) policy, respectively. Low = bottom 33rd percentile of WTP from 1,000 random draws of WTP; high = upper 33rd percentile of WTP from 1,000 random draws of WTP.
*, **, *** Significance at the 10%, 5%, and 1% levels, respectively.