AgriScape DCE Simulation Results
Johannes L.
2025-11-26
Utility functions tested
\[ \begin{aligned} x_{njt,1} &= \text{carbon sequestration} \\ x_{njt,2} &= \text{above ground biodiversity} \\ x_{njt,3} &= \text{water pollution (N leaching)} \\ x_{njt,4} &= \text{below ground biodiversity} \\ x_{njt,5} &= \text{indirect landuse effects} \\ x_{njt,6} &= \text{tax} \end{aligned} \]
Interaction
\[ U_{njt} = \beta_0 + \sum_{k=1}^{6} \beta_k x_{njt,k} + \sum_{k=1}^{4} \beta_k x_{njt,k} SQ_{n,k} + \beta_{11} x_{njt,1} x_{njt,3} + \beta_{12} x_{njt,1} x_{njt,5} + \varepsilon_{njt} \]
Quadratic
\[ U_{njt} = \beta_0 + \sum_{k=1}^{4} \left( \beta_k x_{njt,k} + \beta_k x_{njt,k}^2 \right) + \beta_5 x_{njt,5} + \beta_6 x_{njt,6} + \beta_{11} x_{njt,1} x_{njt,3} + \beta_{12} x_{njt,1} x_{njt,5} + \varepsilon_{njt} \]
Linear
\[ U_{njt} = \beta_0 + \sum_{k=1}^{6} \beta_k x_{njt,k} + \beta_{11} x_{njt,1} x_{njt,3} + \beta_{12} x_{njt,1} x_{njt,5} + \varepsilon_{njt} \]
Logarithmic
\[ U_{njt} = \beta_0 + \sum_{k=1}^{4} \beta_k \log(x_{njt,k}) + \beta_5 x_{njt,5} + \beta_6 x_{njt,6} + \beta_{11} log(x_{njt,1})log(x_{njt,3}) + \beta_{12} log(x_{njt,1}) x_{njt,5} + \varepsilon_{njt} \]
Treatment specification
\[ U_{njt} = \beta_0 + \sum_{k=1}^{4} \beta_k \log(x_{njt,k}) + \beta_5 x_{njt,5} + \beta_6 x_{njt,6} + \beta_{11} x_{njt,1} x_{njt,3} + \beta_{12} x_{njt,1} x_{njt,5} + \delta_{1} x_{njt,6}*treatment + \varepsilon_{njt} \]
Interaction specification
Quadratic specification
Logarithmic specification
Linear specification
Treatment specification
| Level | Share |
|---|---|
| FALSE | 0.05 |
| TRUE | 0.95 |