Hu, Wuyang

By: Nemati, Mehdi; Zheng, Yuqing; Hu, Wuyang
Manufacturers have relied on environmental management systems to meet government environmental regulations, enhance their environmental performance, and reduce their impact on the environment. We investigate the impact of ISO 14001 certification on manufacturers’ toxic release levels. We applied the censored quantile instrumental variable estimator (CQIV) to data on U.S. transportation equipment manufacturing subsector facilities. Results show that for large firms, encouraging voluntary adoption of ISO 14001 might be an effective government strategy to reduce on-site pollution. However, for small firms and for the purpose of reducing off-site pollution, other economic incentives or regulations might be warranted.
By: Penn, Jerrod M.; Hu, Wuyang; Cox, Linda J.
In a choice experiment, when respondents are not given the opportunity to choose none of the options offered in a choice set, the choices can be considered forced. In this study of visits to Hawaiian beaches, we adopt a dual-response choice experiment that allows a comparison between forced and unforced choices while avoiding the possible confounding effect of choice set complexity found in previous research. The results suggest that individual willingness to pay is different in forced and unforced choice sets. Joint tests for parameter equality provide evidence to support the use of unforced choice designs.
By: Zhong, Hua; Hu, Wuyang; Penn, Jerrod M.
Missing-data problems are common in farmer surveys but are often ignored in the literature. Conventional methods to address missing data, such as deletion and mean replacement, assume that data are missing completely at random, which rarely holds. This study compares these approaches to the multiple imputation method, which produces different parameter estimates. The mean replacement method increases the central tendency of data, leading to more significant but smaller coefficients than the other methods. We recommend using both the deletion and multiple imputation methods to deal with missing data; results generated by the mean replacement method may not be as reliable.
This article introduces a discrete choice model which incorporates a nonlinear structural adjustment to the standard utility coefficients or decision weights. The proposed model is theoretically and empirically appealing when compared to several alternative approaches, and it can be estimated by conventional maximum likelihood. Application of the proposed model in a case study shows that it outperforms two competing approaches in model fit. Given its simplicity, this model is also capable of revealing consumers' heterogeneous choices. It is shown that based on consumers' different characteristics, their product choice and its welfare implications are also potentially different.
This study incorporates reference point effects into a stated choice survey of consumer demand for food with credence attributes. Parametric tests can be applied to the utility function to examine the existence of reference price effects. Results are consistent with prospect theory in that consumers exhibit strong and nonlinear reference price effects, with cheaper prices receiving less decision weight than higher prices. The underlying utility function is concave over lowered prices and convex over increased prices, with diminishing sensitivity in both domains. The study, however, did not find experience or consumers' attitudes to be significant in explaining reference price effects.
By: Hu, Wuyang; Zhong, Funing; Ding, Yulian
Information has been proven to have significant impacts on consumers' behavior and willingness to pay (WTP). In this study, information on GM soybean oil is given in the form of real-life cases involving GM food. These cases recorded from actual media reports. Using a hybrid of the double-bounded and payment care elicitation approaches, Chinese consumers' WTP for soybean oil is examined both before and after these cases are presented to them. Results indicate that media reports on positive cases do not increase consumers' WTP significantly, while reports on negative cases drastically lower their WTP.