IDEAS home Printed from https://ideas.repec.org/p/wai/econwp/07-05.html
   My bibliography  Save this paper

Valuing Animal Genetic Resources: A Choice Modeling Application to Indigenous Cattle in Kenya

Author

Listed:
  • Eric Ruto

    (University of Newcastle)

  • Guy Garrod

    (University of Newcastle)

  • Riccardo Scarpa

    (University of Waikato)

Abstract

In an effort to improve productivity and profits many farmers have replaced traditional livestock breeds with higher yielding alternatives. While such changes may bring about short-term economic gains, the loss of traditional livestock breeds could result in the loss of an important genetic resource as a variety of important genetic traits adapted to local conditions gradually become less common in the population. This is a particular problem in Africa, where livestock make a substantial contribution to human livelihoods. Using the example of cattle in Kenya’s pastoral livestock markets this study uses a choice experiment approach to investigate buyers’ preferences for indigenous breeds such as the Maasai Zebu. The analysis employs a latent class approach to characterize heterogeneity in valuations both within and across respondents buying cattle for breeding, slaughter or resale. The results show that there are at least three classes of buyers with distinct preferences for cattle traits and that most buyers favor exotic rather than indigenous breeds. Such preferences have implications for the conservation of indigenous cattle in Kenya and in other developing countries and suggest that some form of intervention may be required to ensure the preservation of this important animal genetic resource.

Suggested Citation

  • Eric Ruto & Guy Garrod & Riccardo Scarpa, 2007. "Valuing Animal Genetic Resources: A Choice Modeling Application to Indigenous Cattle in Kenya," Working Papers in Economics 07/05, University of Waikato.
  • Handle: RePEc:wai:econwp:07/05
    as

    Download full text from publisher

    File URL: https://repec.its.waikato.ac.nz/wai/econwp/0705.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Riccardo Scarpa & Mara Thiene, 2004. "Destination Choice Models for Rock Climbing in the Northeast Alps: A Latent-Class Approach Based on Intensity of Participation," Working Papers 2004.131, Fondazione Eni Enrico Mattei.
    2. Ayalew, W. & King, J. M. & Bruns, E. & Rischkowsky, B., 2003. "Economic evaluation of smallholder subsistence livestock production: lessons from an Ethiopian goat development program," Ecological Economics, Elsevier, vol. 45(3), pages 473-485, July.
    3. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
    4. Francis M. Bator, 1958. "The Anatomy of Market Failure," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 72(3), pages 351-379.
    5. Drucker, Adam G. & Gomez, Veronica & Anderson, Simon, 2001. "The economic valuation of farm animal genetic resources: a survey of available methods," Ecological Economics, Elsevier, vol. 36(1), pages 1-18, January.
    6. Scarpa, Riccardo & Ruto, Eric S. K. & Kristjanson, Patti & Radeny, Maren & Drucker, Adam G. & Rege, John E. O., 2003. "Valuing indigenous cattle breeds in Kenya: an empirical comparison of stated and revealed preference value estimates," Ecological Economics, Elsevier, vol. 45(3), pages 409-426, July.
    7. Wuyang Hu, 2004. "Trading off health, environmental and genetic modification attributes in food," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 31(3), pages 389-408, September.
    8. Greene, William H. & Hensher, David A., 2003. "A latent class model for discrete choice analysis: contrasts with mixed logit," Transportation Research Part B: Methodological, Elsevier, vol. 37(8), pages 681-698, September.
    9. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555.
    10. W. Michael Hanemann, 1984. "Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(3), pages 332-341.
    11. Rege, J. E. O. & Gibson, J. P., 2003. "Animal genetic resources and economic development: issues in relation to economic valuation," Ecological Economics, Elsevier, vol. 45(3), pages 319-330, July.
    12. Jabbar, M. A. & Diedhiou, M. L., 2003. "Does breed matter to cattle farmers and buyers?: Evidence from West Africa," Ecological Economics, Elsevier, vol. 45(3), pages 461-472, July.
    13. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D., 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, September.
    14. Tano, Kouadio & Kamuanga, Mulumba & Faminow, Merle D. & Swallow, Brent, 2003. "Using conjoint analysis to estimate farmer's preferences for cattle traits in West Africa," Ecological Economics, Elsevier, vol. 45(3), pages 393-407, July.
    15. Bill Provencher & Kenneth A. Baerenklau & Richard C. Bishop, 2002. "A Finite Mixture Logit Model of Recreational Angling with Serially Correlated Random Utility," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 1066-1075.
    16. Riccardo Scarpa & Mara Thiene, 2005. "Destination Choice Models for Rock Climbing in the Northeastern Alps: A Latent-Class Approach Based on Intensity of Preferences," Land Economics, University of Wisconsin Press, vol. 81(3).
    17. Peter Boxall & Wiktor Adamowicz, 2002. "Understanding Heterogeneous Preferences in Random Utility Models: A Latent Class Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(4), pages 421-446, December.
    18. Scarpa, Riccardo & Drucker, Adam G. & Anderson, Simon & Ferraes-Ehuan, Nancy & Gomez, Veronica & Risopatron, Carlos R. & Rubio-Leonel, Olga, 2003. "Valuing genetic resources in peasant economies: the case of 'hairless' creole pigs in Yucatan," Ecological Economics, Elsevier, vol. 45(3), pages 427-443, July.
    19. Edward Morey & Jennifer Thacher & William Breffle, 2006. "Using Angler Characteristics and Attitudinal Data to Identify Environmental Preference Classes: A Latent-Class Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(1), pages 91-115, May.
    20. Anderson, Simon, 2003. "Animal genetic resources and sustainable livelihoods," Ecological Economics, Elsevier, vol. 45(3), pages 331-339, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eric Ruto & Riccardo Scarpa, 2010. "Using Choice Experiments to Investigate Preferences for Cattle Traits in Kenya," Chapters, in: Jeff Bennett & Ekin Birol (ed.), Choice Experiments in Developing Countries, chapter 14, Edward Elgar Publishing.
    2. Sergio Colombo & Nick Hanley & Jordan Louviere, 2009. "Modeling preference heterogeneity in stated choice data: an analysis for public goods generated by agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 40(3), pages 307-322, May.
    3. Zander, Kerstin K. & Drucker, Adam G., 2008. "Conserving what's important: Using choice model scenarios to value local cattle breeds in East Africa," Ecological Economics, Elsevier, vol. 68(1-2), pages 34-45, December.
    4. Kloos, Julia & Tsegai, Daniel W., 2009. "Preferences for domestic water services in the Middle Olifants sub-basin of South Africa," Discussion Papers 49970, University of Bonn, Center for Development Research (ZEF).
    5. Riccardo Scarpa & Kenneth G. Willis & Melinda Acutt, 2004. "Comparing Individual-Specific Benefit Estimates for Public Goods: Finite Versus Continuous Mixing in Logit Models," Working Papers 2004.132, Fondazione Eni Enrico Mattei.
    6. Angel Bujosa & Antoni Riera & Robert Hicks, 2010. "Combining Discrete and Continuous Representations of Preference Heterogeneity: A Latent Class Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(4), pages 477-493, December.
    7. Roessler, Regina & Drucker, Adam G. & Scarpa, Riccardo & Markemann, André & Lemke, Ute & Thuy, Le T. & Valle Zárate, Anne, 2008. "Using choice experiments to assess smallholder farmers' preferences for pig breeding traits in different production systems in North-West Vietnam," Ecological Economics, Elsevier, vol. 66(1), pages 184-192, May.
    8. Ekin Birol & Sukanya Das, 2010. "The Value of Improved Public Services : An Application of the Choice Experiment Method to Estimate the Value of Improved Wastewater Treatment Infrastructure in India," Development Economics Working Papers 23062, East Asian Bureau of Economic Research.
    9. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    10. Kikulwe, Enoch & Birol, Ekin & Wesseler, Justus & Falck-Zepeda, José, 2009. "A latent class approach to investigating consumer demand for genetically modified staple food in a developing country: The case of GM bananas in Uganda," IFPRI discussion papers 938, International Food Policy Research Institute (IFPRI).
    11. Mohammed H. Alemu & Søren B. Olsen & Suzanne E. Vedel & Kennedy O. Pambo & Victor O. Owino, 2015. "Consumer acceptance and willingness to pay for edible insects as food in Kenya: the case of white winged termites," IFRO Working Paper 2015/10, University of Copenhagen, Department of Food and Resource Economics.
    12. Jinsoo Hwang & Seong Ok Lyu & Sun-Bai Cho, 2019. "In-Flight Casinos, Is It Really a Nonsensical Idea? An Exploratory Approach Using Different Choice Experiments," Sustainability, MDPI, vol. 11(11), pages 1-16, May.
    13. Girma T. Kassie & Awudu Abdulai & Clemens Wollny, 2009. "Valuing Traits of Indigenous Cows in Central Ethiopia," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(2), pages 386-401, June.
    14. Mara Thiene & Riccardo Scarpa & Jordan Louviere, 2015. "Addressing Preference Heterogeneity, Multiple Scales and Attribute Attendance with a Correlated Finite Mixing Model of Tap Water Choice," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(3), pages 637-656, November.
    15. Novikova, Anastasija & Rocchi, Lucia & Vitunskienė, Vlada, 2017. "Assessing the benefit of the agroecosystem services: Lithuanian preferences using a latent class approach," Land Use Policy, Elsevier, vol. 68(C), pages 277-286.
    16. Beharry-Borg, Nesha & Scarpa, Riccardo, 2010. "Valuing quality changes in Caribbean coastal waters for heterogeneous beach visitors," Ecological Economics, Elsevier, vol. 69(5), pages 1124-1139, March.
    17. William Breffle & Edward Morey & Jennifer Thacher, 2011. "A Joint Latent-Class Model: Combining Likert-Scale Preference Statements With Choice Data to Harvest Preference Heterogeneity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(1), pages 83-110, September.
    18. Junui Shen & Kazuhito Ogawa & Hiromasa Takahashi, 2014. "Examining the Tradeoff Between Fixed Pay and Performance-Related Pay: A Choice Experiment Approach," Review of Economic Analysis, Digital Initiatives at the University of Waterloo Library, vol. 6(2), pages 119-131, December.
    19. Junyi Shen & Tatsuyoshi Saijo, 2007. "Does energy efficiency label alter consumers f purchase decision? A latent class approach on Shanghai data," OSIPP Discussion Paper 07E005, Osaka School of International Public Policy, Osaka University.
    20. Teferi, Ermias Tesfaye & Kassie, Girma T. & Pe, Mario Enrico & Fadda, Carlo, 2020. "Are farmers willing to pay for climate related traits of wheat? Evidence from rural parts of Ethiopia," Agricultural Systems, Elsevier, vol. 185(C).

    More about this item

    Keywords

    animal genetic resources; economic valuation; choice experiments; latent class models; indigenous livestock; Maasai Zebu cattle;
    All these keywords.

    JEL classification:

    • N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wai:econwp:07/05. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Geua Boe-Gibson (email available below). General contact details of provider: https://edirc.repec.org/data/dewaknz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.