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Investment Behavior and Energy Conservation

Published online by Cambridge University Press:  10 May 2017

Eddy L. LaDue ,
Lynn H. Miller  and
Joseph H. Kwiatkowski
Eddy L. LaDue
Affiliation:
Department of Agricultural Economics, Cornell University
Lynn H. Miller
Affiliation:
Department of Agricultural Economics, Cornell University
Joseph H. Kwiatkowski
Affiliation:
Department of Agricultural Economics, Cornell University
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Abstract

Binary logit and bivariate probit models were used to investigate the investment behavior of farmers relative to two energy-conserving assets, heat-recovery systems and precoolers. The bivariate probit procedure was useful in correcting for self-selectivity bias. Holdout samples and cross-validation procedures were used to develop true model statistics. Farm size, educational level of the operator, and the type of milking system in use were the important factors influencing investment behavior.

Type
Articles
Information
Northeastern Journal of Agricultural and Resource Economics , Volume 19 , Issue 2 , October 1990 , pp. 99 - 108
Copyright
Copyright © 1990 Northeastern Agricultural and Resource Economics Association 

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Footnotes

This research was supported by the Niagara Mohawk Power Corporation under a contract with Cornell University and by Cornell University Agricultural Experiment Station Hatch Project 121–413, U.S. Department of Agriculture.

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