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The Motivation behind Behavioral Thresholds: A Latent Class Approach

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Author Info

  • Nobuyuki Ito

    ()
    (Division of Natural Resource Economics, Graduate School of Agriculture, Kyoto Univerisy)

  • Kenji Takeuchi

    ()
    (Graduate School of Economics, Kobe University)

  • Takahiro Tsuge

    ()
    (Faculty of Economics, Konan University)

  • Atsuo Kishimoto

    ()
    (National Institute of Advanced Industrial Science and Technology)

Abstract

This paper extends Ito et al. (2010) to reveal whether altruism is an underlying motive of the behavioral thresholds. We also investigate the influence of environmental concern as one of the underlying motives of them. Applying contingent valuation (CV) methods, we conducted a stated preference survey to study people's cooperative behavior in the donation to Green Power Fund (GPF). We use latent class approach in order to examine the underlying motives of the thresholds. The results show that the participation rate in the donation to the GPF, which completely cancels out the amount of CO2 emission from a household's electricity consumption, is estimated as 59.24% at the psychosocial equilibrium when the suggested donation amount is 500 yen. We found that for a latent class with higher altruism and environmental concern there is a statistically significant impact of the equilibrium participation rate through behavioral thresholds.

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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 32 (2012)
Issue (Month): 3 ()
Pages: 1831-1847

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Handle: RePEc:ebl:ecbull:eb-11-00650

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Related research

Keywords: green electricity fund; contingent valuation; threshold model; critical mass; latent class model; double-bounded dichotomous choice;

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References

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  1. Ek, Kristina, 2005. "Public and private attitudes towards "green" electricity: the case of Swedish wind power," Energy Policy, Elsevier, vol. 33(13), pages 1677-1689, September.
  2. Kotchen, Matthew J. & Moore, Michael R., 2007. "Private provision of environmental public goods: Household participation in green-electricity programs," Journal of Environmental Economics and Management, Elsevier, vol. 53(1), pages 1-16, January.
  3. Emmanuel Flachaire & Guillaume Hollard, 2006. "Controlling Starting-Point Bias in Double-Bounded Contingent Valuation Surveys," Land Economics, University of Wisconsin Press, vol. 82(1), pages 103-111.
  4. DeShazo, J. R., 2002. "Designing Transactions without Framing Effects in Iterative Question Formats," Journal of Environmental Economics and Management, Elsevier, vol. 43(3), pages 360-385, May.
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  7. Urs Fischbacher & Simon Gaechter, 2008. "Social Preferences, Beliefs, and the Dynamics of Free Riding in Public Good Experiments," CESifo Working Paper Series 2491, CESifo Group Munich.
  8. Palfrey, Thomas R & Prisbrey, Jeffrey E, 1997. "Anomalous Behavior in Public Goods Experiments: How Much and Why?," American Economic Review, American Economic Association, vol. 87(5), pages 829-46, December.
  9. Peter Boxall & Wiktor Adamowicz, 2002. "Understanding Heterogeneous Preferences in Random Utility Models: A Latent Class Approach," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 23(4), pages 421-446, December.
  10. Ek, Kristina & Söderholm, Patrik, 2008. "Norms and economic motivation in the Swedish green electricity market," Ecological Economics, Elsevier, vol. 68(1-2), pages 169-182, December.
  11. Roe, Brian & Teisl, Mario F. & Levy, Alan & Russell, Matthew, 2001. "US consumers' willingness to pay for green electricity," Energy Policy, Elsevier, vol. 29(11), pages 917-925, September.
  12. Ito, Nobuyuki & Takeuchi, Kenji & Tsuge, Takahiro & Kishimoto, Atsuo, 2010. "Applying threshold models to donations to a green electricity fund," Energy Policy, Elsevier, vol. 38(4), pages 1819-1825, April.
  13. Bergmann, Ariel & Colombo, Sergio & Hanley, Nick, 2008. "Rural versus urban preferences for renewable energy developments," Ecological Economics, Elsevier, vol. 65(3), pages 616-625, April.
  14. Roland Menges & Carsten Schroeder & Stefan Traub, 2005. "Altruism, Warm Glow and the Willingness-to-Donate for Green Electricity: An Artefactual Field Experiment," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 31(4), pages 431-458, 08.
  15. Longo, Alberto & Markandya, Anil & Petrucci, Marta, 2008. "The internalization of externalities in the production of electricity: Willingness to pay for the attributes of a policy for renewable energy," Ecological Economics, Elsevier, vol. 67(1), pages 140-152, August.
  16. Andreoni, James, 1988. "Why free ride? : Strategies and learning in public goods experiments," Journal of Public Economics, Elsevier, vol. 37(3), pages 291-304, December.
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