Browsing by Author "Ponce Oliva, Roberto D."

Now showing 1 - 8 of 8
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    A comparison of mixed logit and latent class models to estimate market segments for seafood faced with ocean acidification
    (2023) Campos-Requena, Nelyda; Vasquez-Lavin, Felipe; Fernandez, Francisco; Barrientos, Manuel; Gelcich, Stefan; Ponce Oliva, Roberto D.
    This study uses a choice experiment to characterize market segments (consumer preferences heterogeneity) based on three attributes of seafood (mussels) that are affected by ocean acidification: shell appearance, meat color, and nutritional composition. Using a sample of 1,257 individuals from two main cities in Chile, we estimate both the Mixed Logit model and the Latent Class model. We use the individual-specific posterior (ISP) parameters' distribution to categorize consumers' heterogeneity based on the signs and intensity (i.e., like or dislike dimension) of these ISPs. We compare the pattern of preferences and whether people are classified within the same preference pattern in both models. In general, we observed that the models identify a different number of segments with various patterns of preferences. Moreover, the models classify the same people into different groups. Since the segmentation is sensitive to the chosen model, we discuss strengths, inconsistencies, biases, and best practices regarding methodological approaches to establishing market segments in choice experiments and future ocean acidification conditions.
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    Estimating discount rates for environmental goods: Are People's responses inadequate to frequency of payments?
    (2021) Vasquez-Lavin, Felipe; Carrasco, Moises; Barrientos, Manuel; Gelcich, Stefan; Ponce Oliva, Roberto D.
    Most stated preference studies estimate discount rates using a split-sample approach. Each sample faces a different payment frequency (for instance, 1, 5, 10) together with a randomly assigned bid vector; both the frequency of payments and the bid are fixed for a specific individual. This paper evaluates whether allowing respondents to choose their preferred payment frequency affects the estimated discount rate. We use data from a contingent valuation survey of a network of marine reserves and estimate discount rates using both an exogenous and endogenous approach. The former calculates the mean of the willingness to pay (WTP) for each sample and then finds the discount rate that makes the present value of each payment frequency equivalent. The latter estimates the WTP and the discount rate jointly. Results show that allowing people to choose the payment schedule significantly reduces the implicit discount rate. We observed the highest reductions in discount rates when we used all the information available from the valuation questions to bound the WTP distribution. Our analysis suggests that the exogenous approach would not be recommended for testing the adequacy of people's responses to the frequency of payments. (c) 2021 Elsevier Inc. All rights reserved.
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    Estimating the implicit discount rate for new technology adoption of wood-burning stoves
    (2021) Carrasco-Garces, Moises; Vasquez-Lavin, Felipe; Ponce Oliva, Roberto D.; Diaz Pincheira, Francisco; Barrientos, Manuel
    In the last decade, there have been several initiatives to incentivize Efficient Energy Technologies (EET) to reduce air pollution caused by wood-burning in developing countries. More efficient woodstoves can improve health, reduce family expenditures, CO2 emissions, and forest degradation. Despite these benefits, there is low level of adoption of EETs. This paper contributed to the literature in three ways. First, it estimates the implicit discount rate (IDR) used by individuals to decide whether to adopt EET using exponential and hyperbolic specifications. Second, it includes sociodemographic characteristics in the definition of the IDR. Third, it evaluates how the adoption curve changes by different policy designs. Since the interest rate is part of the policy design, comparing the interest rate and the IDR is relevant to increasing adoption. Our monthly estimated IDR is between 1.7% and 5.4% with a significant overlap with market interest rate. The IDR is affected by the perception of the future economic situation, trust in environmental authorities, happiness, and gender. We found that using an interest rate lower than the IDR increases the probability of adoption significantly. An understanding of the effects of copayments, payment frequencies, and difference between interest rates and IDR is needed to maximize adoption.
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    Exploring the adaptive capacity of the mussel mariculture industry in Chile
    (ELSEVIER, 2020) San Martin, Valeska A.; Vasquez Lavin, Felipe; Ponce Oliva, Roberto D.; Paz Lerdon, Ximena; Rivera, Antonella; Serramalera, Leticia; Gelcich, Stefan
    Societies have adapted to climate and environmental variability throughout history. However, projected climate change poses multiple risks to mariculture because of the increased frequency of environmental threats that lie outside the realm of present day experience. Adaptive capacity evaluated in this study is a characteristic that would reflect mariculture industries ability to anticipate and respond to these changes, and to minimize, cope with, and recover from the consequences and take advantage of new opportunities arising from change. Drawing on a survey to 90 mussel mariculture companies in Chiloe-Chile, we have characterized the way the industry has adapted and recovered from specific stressors in productive capacity, namely; reduced mussel growth rates and reduced larval supply. We additionally assess determinants of the mussel industry's willingness to invest in building capacity to anticipate changes through analysing mussel aquaculture companies' assets to draw upon in times of need (capital; access to credit), the flexibility to change strategies, the companies' perception of the industry's social organization to act collectively (social capital), and their response to hypothetical scenarios regarding shocks in productive capacity. Results show heterogeneity in production decisions when facing environmental stressors. Results also show that the industry adapts in heterogeneous ways and that financial assets and social capital drive willingness to invest in adaptive capacity. Understanding past adaptation strategies and the willingness of the industry to invest in anticipating stressors allows us to begin exploring the consequences of new stressors. Importantly, as Chile and other countries are developing adaptation plans to face the multiple stressors of climate change, information about stakeholders' existing adaptation strategies and their determinants is becoming a critical bottleneck to inform these processes and assure they are in line with stakeholder needs and interest. While we use the Chilean mussel industry as a working example, the approach presented can inform other countries/regions wishing to explore the adaptive capacity of their aquaculture sectors.
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    Firewood certification programs: Key attributes and policy implications
    (2020) Vasquez Lavin, Felipe; Barrientos, Manuel; Castillo, Alvaro; Herrera, Ivan; Ponce Oliva, Roberto D.
    Evidence from south-central Chile shows that the concentration limits for PM10 and PM2.5, defined by both the World Health Organization and national standards, are systematically exceeded, affecting approximately 10 million people. Among the sources of this pollution, firewood use accounts for the largest share. This study assesses whether consumers value environmental, social, and legal attributes associated with the firewood certification programs. We used a discrete choice model based on a sample of 500 households. According to our results, the price premium for certified firewood is about 10% in the most likely scenario, with those attributes closely related to private benefits having a higher value, compared to those of social benefits. We identify significant heterogeneity among respondents belonging to two different consumer classes: 1) those who are less price sensitive and are willing to pay for attributes related to certification; 2) those who are sensitive to prices and are not willing to pay for attributes related to certification. Since the second class includes about 46% of the sample, the implementation of certification programs could be jeopardized. Therefore, knowing this information helps us determine whether a certification system can foster the firewood industry transition to a more sustainable model.
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    Firms adaptation to climate change through product innovation
    (2022) Ponce Oliva, Roberto D.; Huaman, Joana; Vasquez-Lavin, Felipe; Barrientos, Manuel; Gelcich, Stefan
    Climate change will impose high costs on different societal actors, including firms and organizations, forcing them to adapt to this new situation. Although the relevance of implementing adaptation strategies is widely recognized, studies on firms' adaptation to climate change are still in their infancy, especially regarding small and medium enterprises. Following a multi-stage approach, we analyze how small and medium enterprises in the marine food industry could adapt to climate-induced ocean acidification through product innovation. First, we use a co-production process with the firms' representatives to gain insights into the industry's adaptation opportunities, in which product innovation arises as the preferred strategy. Second, using a Discrete Choice Experiment, we test if consumers value both the mussels' attributes likely affected by ocean acidification (sensory and nutritional) and the proposed new products developed to adapt to it. We also analyze preferences' heterogeneity through a latent class model. Our results show that consumers value the attributes potentially affected by ocean acidification. We found high heterogeneity in consumer preferences regarding product types, disentangled into two classes (non-innovative consumers and consumers willing to innovate). We suggest that the industry could base its adaptation strategy on two pillars: 1) maintain the traditional format, thus satisfying 21% of the market (non-innovative consumers); 2) direct the innovation efforts towards the canned format, thus satisfying those consumers willing to innovate (79% of the market). Although consumers willing to innovate are prone to try new formats, the preferred alternatives are not radical innovations.
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    Water demand in the Chilean manufacturing industry: Analysis of the economic value of water and demand elasticities
    (2020) Vasquez-Lavin, Felipe; Vargas O, Leonardo; Hernandez, Jose, I; Ponce Oliva, Roberto D.
    In this article, we estimate both the economic value of water and own-price and cross-price elasticities of water for the Chilean manufacturing industry using the production function approach. Estimating the production function allows us to estimate the marginal productivity of water which corresponds to its economic value. Our estimations are based on panel data obtained from the National Industrial Survey for the period 1995-2014, accounting for more than 10,000 industrial plants. We use a translog specification for the production function, considering water, capital, labor, energy, and intermediate material as explanatory variables. We find substitution patterns among most inputs, except for energy and water, which are found to be complements. Our results suggest that the manufacturing sector is characterized by an elastic water demand, with an average economic value of water of 8.071 [USD/m(3)]. Based on our findings, there is room to increase water prices in most sectors without affecting the competitiveness of firms. Knowing the economic value of water and its price elasticity could help policymakers to design water policies that promote more efficient use of this scarce resource.
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    Water Use and Climate Stressors in a Multiuser River Basin Setting: Who Benefits from Adaptation?
    (2021) Ponce Oliva, Roberto D.; Arias Montevechio, Esteban; Fernandez Jorquera, Francisco; Vasquez-Lavin, Felipe; Stehr, Alejandra
    Adapting to new climate conditions will require an intricate mix of knowledge, planning, coordination, and foresight. There is increasing sectoral evidence on the implementation of successful adaptation actions. However, the success of these actions when we consider the interdependencies among sectors remains debatable. This paper aims to assess who benefits from implementing adaptation options in a multiuser river basin to both climate-induced and demographic stress on water use. Our analysis relies on a hydro-economic model that considers two sets of water users: agriculture and urban households. We innovate in our modelling approach by analyzing and explicitly integrating the household-level economic behavior through its water demand. We assess the cross-user consequences of autonomous and planned adaptation actions. We provide insights into the different trade-offs at the basin level, demonstrating the compatibilities and divergences between agriculture and household-level water demand. We found different consequences of implementing either autonomous or planned adaptation measures. For instance, a decentralized scheme would drive negative implications for the entire basin, although the less water-intensive sector will be better off. On the other hand, different policy interventions would drive positive consequences for the entire basin, with the most water-intensive sector benefiting the most. These results highlight the distributional consequences across users of different adaptation measures.