June 21, 2010 IFPRI Policy Seminar Washington, DC Economics Beyond Markets: Choice Experiments In Developing Countries Jeff Bennett Ekin Birol Derek Byerlee

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

4. Examples of choice experiment
applications in developing countries

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

6. Why use this method in developing
countries?

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

8. Challenges faced and advice to future
practitioners in developing countries