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Household perceptions of climate change and preferences for mitigation action: the case of the Carbon Pollution Reduction Scheme in Australia

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Author Info

  • Akter, Sonia
  • Bennett, Jeffrey W.

Abstract

The study aims to reveal Australian households’ perceptions of climate change and their preferences for climate change mitigation actions. A web-based survey was conducted in November 2008 in which about 600 New South Wales households were asked for their willingness to bear extra household expenditure to support the ‘Carbon Pollution Reduction Scheme (CPRS)’ as proposed by the Australian government. The Contingent Valuation Method (CVM), a widely used non-market valuation technique, was applied using the single bounded dichotomous choice elicitation format. Results of the study demonstrate that, currently, there is a positive demand for climate change mitigation action in Australia. The main motivation for this positive demand stems from a desire to avoid climate change. However, society’s willingness to pay (WTP) for climate change mitigation is shown to be significantly curbed by uncertainties regarding the extent of climate change and the effectiveness of climate change policy. Global cooperation (major greenhouse gas emitting countries implementing similar scheme) plays an important role in determining Australian households’ support for the CPRS. Only when cooperation is assumed, do the benefits of the CPRS, as estimated by respondents’ WTP, exceed its costs.

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Bibliographic Info

Paper provided by Australian Agricultural and Resource Economics Society in its series 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia with number 47936.

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Date of creation: 2009
Date of revision:
Handle: RePEc:ags:aare09:47936

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Related research

Keywords: Contingent valuation; climate change; Carbon Pollution Reduction Scheme; willingness to pay; uncertainty; Australia;

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References

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  1. Cameron, Trudy Ann, 2005. "Individual option prices for climate change mitigation," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 283-301, February.
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Cited by:
  1. Carlsson, Fredrik & Kataria, Mitesh & Krupnick, Alan & Lampi, Elina & Lofgren, Asa & Qin, Ping & Chung, Susie & Sterner, Thomas, 2010. "Paying for Mitigation: A Multiple Country Study," Discussion Papers dp-10-12-efd, Resources For the Future.
  2. Diederich, Johannes & Goeschl, Timo, 2011. "Willingness to Pay for Individual Greenhouse Gas Emissions Reductions: Evidence from a Large Field Experiment," Working Papers 0517, University of Heidelberg, Department of Economics.
  3. Acquah, H. de-Graft & Onumah, Edward E., 2011. "Farmers Perception and Adaptation to Climate Change: An Estimation of Willingness to Pay," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 3(4), December.
  4. Sonia Akter & Jeff Bennett & Michael B. Ward, 2013. "Climate change scepticism and public support for mitigation: evidence from an Australian choice experiment," Monash Economics Working Papers archive-47, Monash University, Department of Economics.
  5. Shewmake, Sharon & Okrent, Abigail M. & Thabrew, Lanka & Vandenbergh, Michael, 2012. "Carbon Labeling for Consumer Food Goods," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124369, Agricultural and Applied Economics Association.
  6. Zachary A. Wendling & Shahzeen Z. Attari & Sanya R. Carley & Rachel M. Krause & David C. Warren & John A. Rupp & John D. Graham, 2013. "On the Importance of Strengthening Moderate Beliefs in Climate Science to Foster Support for Immediate Action," Sustainability, MDPI, Open Access Journal, vol. 5(12), pages 5153-5170, December.

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