APL (Ajiken Power Lunch)

APL (Ajiken Power Lunch) is a lunchtime workshop open to public, including IDE staffs, visiting research fellows, IDEAS students, outside researchers and graduate students. This workshop provides a platform for presentation of any work in progress where we can discuss in either English or Japanese.

Those who would attend a seminar are asked to announce yourself to receptionists on your arrival at the IDE and to obtain APL Organizers' signature on your admission card after the seminar.

December 13, 2016. (Tuesday) 14：30-16：00

Institute of Developing Economies, Japan External Trade Organization C22 Meeting Room 　

Willingness to Accept Compensation for Ambient Large-scale Broiler Farm Air Pollution

With the development of agricultural industrialization, the environmental issues of intensive animal farming attract more and more attention. Using the survey data from 313 Chinese households living nearby large-scale broiler farms of an international food company, this paper quantifies the willingness to accept (WTA) for air pollution compensation scheme using contingent valuation method (CVM) and discrete choice experiment (DCE). We find that: (1) 42% of respondents has a non-cash WTA or a positive infinity WTA, so the conventional CVM is not suitable to be applied to them. (2) The results of multinomial logit model show that the (actual or virtual) distance to the nearest farm has a significantly non-linear effect on the compensation type choice. To be specific, the nearest and farthest households are less likely to accept the cash compensation. Without other possible non-cash alternative compensation available, they only accept in the case that the payment is prohibitively high. (3) For the households who have regular cash WTA, the further the actual distance, the lower the WTA as expected. (4) The results of DCE show that, for the group who has infinity WTA, alternative non-cash compensation options work at a much higher cost. In the perspective of global value chain, it is very meaningful to study the non-cash compensation strategies to explore the sustainable development strategy of multinational corporations.

Dr. Li Zhou (Nanjing Agricultural University)

Lei LEI

English