“…The endogenous switching regression model (ESRM) accounts for observed and unobserved bias by estimating a simultaneous equation model (Lokshin & Sajaia, 2004). The ETRM is nested in ESRM and is widely applied in the analysis of the welfare impact of policies and technology adoption (Adebayo, Bolarin, Oyewale, & Kehinde, 2018; Adego, Simane, & Woldie, 2019; Adela & Aurbacher, 2018; Heckman, Tobias, & Vytlacil, 2003; Mekonnen, 2017). Other relevant studies have applied ESRM to analyse the effect of land‐use changes on water quality (Abildtrup, Garcia, & Kere, 2015), the effect of a large dam on agricultural production (Chen, Hsu, & Wang, 2018), the effect of climate exposure on afforestation (Oyekale & Oyekale, 2019), and the effect of forced displacement on income (Do Yun & Waldorf, 2016).…”