Agricultural multi-functional vehicles and the environment: Choice experiments and random utility models for investigating renewable energies

In this paper the preferences of agricultural firms towards environmental investments in multi-functional vehicles are analyzed through a choice-experiment and the application of multinomial discrete choice models. Furthermore, recent theoretical issues regarding this methodology have been taken into account by considering the heterogeneity of respondents as well as the heteroschedasticity of the error terms across alternatives. More precisely, the Heteroschedastic Extreme Value (HEV) model is applied in order to further investigate the variability of respondents when choosing between vehicles with relevant technological differentiations, such as fuel and product performances.