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Respondent uncertainty in a contingent market for carbon offsets

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  • Akter, Sonia
  • Brouwer, Roy
  • Brander, Luke
  • van Beukering, Pieter

Abstract

The main objective of this paper is to provide additional empirical evidence of what explains respondent uncertainty in contingent valuation (CV) and how this in turn affects stated willingness to pay (WTP). Air travelers asked to pay a carbon travel tax to offset carbon emissions from flying were asked how likely it is that they will actually pay if the tax is voluntary. When changing the market compliance imperative from a mandatory carbon tax to a voluntary contribution, a third of all air travelers consider it unlikely they will actually pay their stated WTP amount. An ordered probit estimation approach is applied to identify the sources of respondent uncertainty. Besides the bid price, respondent sense of responsibility and belief in the effectiveness of the voluntary carbon market are among the main reasons for the experienced uncertainty.

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Bibliographic Info

Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 68 (2009)
Issue (Month): 6 (April)
Pages: 1858-1863

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Handle: RePEc:eee:ecolec:v:68:y:2009:i:6:p:1858-1863

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Web page: http://www.elsevier.com/locate/ecolecon

Related research

Keywords: Respondent uncertainty Contingent valuation Polychotomous choice Climate change Carbon offset;

References

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Citations

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Cited by:
  1. Elcin Akcura, 2013. "Mandatory versus voluntary payment for green electricity," Working Papers 161, European Bank for Reconstruction and Development, Office of the Chief Economist.
  2. Sonia Akter & Jeff Bennett, 2010. "Testing construct validity of verbal versus numerical measures of preference uncertainty in contingent valuation," Environmental Economics Research Hub Research Reports 0946, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University.
  3. Andreas Lange & Andreas Ziegler, 2012. "Offsetting versus Mitigation Activities to Reduce CO2 Emissions: A Theoretical and Empirical Analysis for the U.S. and Germany," MAGKS Papers on Economics 201218, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  4. Stithou, Mavra, 2009. "Respondent Certainty and Payment Vehicle Effect in Contingent Valuation: an Empirical Study for the Conservation of Two Endangered Species in Zakynthos Island, Greece," Stirling Economics Discussion Papers 2009-21, University of Stirling, Division of Economics.
  5. Anderson, Blake & M'Gonigle, Michael, 2012. "Does ecological economics have a future?," Ecological Economics, Elsevier, vol. 84(C), pages 37-48.
  6. Jorge Araña & Carmelo León, 2013. "Can Defaults Save the Climate? Evidence from a Field Experiment on Carbon Offsetting Programs," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 54(4), pages 613-626, April.
  7. Voltaire, Louinord & Pirrone, Claudio & Bailly, Denis, 2013. "Dealing with preference uncertainty in contingent willingness to pay for a nature protection program: A new approach," Ecological Economics, Elsevier, vol. 88(C), pages 76-85.
  8. Elcin Akcura, 2013. "Mandatory vs voluntary Payment for Green Electricity," Cambridge Working Papers in Economics 1339, Faculty of Economics, University of Cambridge.
  9. Mimako Kobayashi & Klaus Moeltner & Kimberly Rollins, 2010. "Latent Thresholds Analysis of Choice Data with Multiple Bids and Response Options," Working Papers 10-001, University of Nevada, Reno, Department of Economics & University of Nevada, Reno , Department of Resource Economics.

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