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Altruist Talk May (also) Be Cheap: Revealed Versus Stated Altruism as a Predictor in Stated Preference Studies

Author

Listed:
  • Endre Kildal Iversen

    (Norwegian University of Life Sciences
    SNF - Centre for Applied Research at NHH)

  • Kristine Grimsrud

    (Statistics Norway)

  • Yohei Mitani

    (Kyoto University)

  • Henrik Lindhjem

    (Menon Centre for Environmental and Resource Economics
    Norwegian Institute for Nature Research (NINA))

Abstract

Altruistic preferences have been found to be important for explaining the substantial non-use values identified in numerous stated preference surveys. However, studies analysing the effect of altruism on willingness to pay (WTP) have underestimated the challenges of measuring altruism by stated measures. We exploit a naturally occurring decision domain to investigate the role of altruism in stated preference studies. We employ a novel dataset, collected from an Internet survey panel, that contains respondents’ past donations of earned survey coins to charities and use these data to analyse the effect of donation behaviour on the same respondents’ WTP. We analyse donation behaviour across two contingent valuation surveys on environmental topics. Donators are proven givers in an anonymous and unrelated setting, much like decision-making in a dictator game. We find that respondents’ past donations are associated with higher WTP, even after controlling for stated measures of altruism, ecological, and environmental attitudes. The results suggest that measures of stated altruism fail to capture important aspects of altruism, implying that previous studies of altruism based on such measures may be questioned. The results also support research demonstrating that altruistic behaviour in one decision domain is a good predictor of altruistic behaviour in other domains.

Suggested Citation

  • Endre Kildal Iversen & Kristine Grimsrud & Yohei Mitani & Henrik Lindhjem, 2022. "Altruist Talk May (also) Be Cheap: Revealed Versus Stated Altruism as a Predictor in Stated Preference Studies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 83(3), pages 681-708, November.
    • Handle: RePEc:kap:enreec:v:83:y:2022:i:3:d:10.1007_s10640-022-00704-y
    DOI: 10.1007/s10640-022-00704-y
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    More about this item

    Keywords

    Prosocial behaviour; Altruism; Contingent valuation; Donations; Willingness to pay;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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