June 21, 2010
IFPRI Policy Seminar
Washington, DC
Economics Beyond Markets: Choice Experiments In Developing Countries
Jeff Bennett
Ekin Birol
Derek Byerlee
Ekin Birol Presentation Economics Beyond Markets: Choice Experiments In Developing Countries
1. Economics Beyond Markets:
Choice Experiments in
Developing Countries
Ekin Birol
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
2. Choice experiments in developing
countries
Increasing number of applications of this method
in developing countries
Demand from developing country researchers
Compiled developing country case studies to
• Showcase the versatility of the method
• Highlight methodological and practical issues
3. Examples of choice experiment
applications in developing countries
Environment-development trade-offs
• China’s Sloping Land Conversion Programme
Valuation of unique eco-systems
• Pakistan’s Indus ecoregion
Provision of public or private goods
• Trade-offs between local public goods vs extension
packages in Ethiopia
Agriculture and food
• Kenyan livestock traders’ preferences for cattle traits
5. Why use this method in developing
countries?
Provide the value of various attributes and
trade-offs
Advantages vis-à-vis other stated preference
methods (e.g., contingent valuation)
Advantages vis-à-vis revealed preference
methods (e.g., hedonic pricing method)
Advantages vis-à-vis randomised experiments
7. Challenges faced and advice to future
practitioners in developing countries
Various issues should be given special
attention when implementing this method in
developing countries
• Survey design
• Payment vehicle
• Experimental design
• Visual aids
• Respondents
• Random choices