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Title: Self-Selection Bias in Estimating the Determinants of Landowners' Re-enrollment Decisions in Forest Incentive Programs
Authors: Mitani, Yohei
Shimada, Hideki
Keywords: Forest incentive program
Agri-environmental program
Private land conservation
Self-selection bias
Policy design
Issue Date: 31-May-2021
Publisher: Division of Natural Resource Economics, Graduate School of Agriculture, Kyoto University
Journal title: NRE-DP: Natural Resource Economics Discussion Papers
Volume: 2021-01
Start page: 0
End page: 21
Abstract: Despite increasing attention in recent years, only a very limited number of studies have investigated the determinants of landowner re-enrollment intention in conservation incentive programs, none of which controlled for the potential self-selection of participants. This concern for a self-selection bias is policy relevant because researchers and policymakers investigate the determinants of re-enrollment in order not only to predict the retention rate of participants but also to promote the long-term success of conservation programs. This paper uses data on eligible landowners, consisting of both participants and non-participants, from a forest incentive program in Japan to examine the determinants of the participant re-enrollment decision, controlling for a rich set of observable landowner attributes and conditioned on the unobserved participant attributes identified by modeling the re-enrollment decision jointly with the decision to participate. The empirical results indicate that the unconditional marginal effects from the separate re-enrollment model are biased by selection and underestimate the effects by between 12% and 48%. The results also show that the observable factors that attract landowners to participate also tend to encourage participants to remain in the program. This implies that interventions directed at increasing initial participation are also likely to increase re-enrollment.
Description: Natural Resource Economics Discussion Papers are preliminary research reports by members of the GSA-NRE Kyoto University circulated for comments and suggestions. They have not been externally peer-reviewed or been subject to the review by the editorial board.
Rights: This is a preprint of the published article: Yohei Mitani and Hideki Shimada (2021), "Self-selection bias in estimating the determinants of landowners' Re-enrollment decisions in forest incentive programs, " Ecological Economics, Volume 188, 107109.
All rights are reserved by the authors.
DOI(Published Version): 10.1016/j.ecolecon.2021.107109
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Appears in Collections:NRE-DP: Natural Resource Economics Discussion Papers

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