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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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  • 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
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Handle: RePEc:ags:aare09:47936

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

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Cited by:
  1. Fredrik Carlsson & Mitesh Kataria & Alan Krupnick & Elina Lampi & Åsa Löfgren & Ping Qin & Susie Chun & Thomas Sterner, 2012. "Paying for Mitigation: A Multiple Country Study," Land Economics, University of Wisconsin Press, vol. 88(2), pages 326-340.
  2. Sonia Akter & Jeff Bennett & Michael B. Ward, 2013. "Climate change scepticism and public support for mitigation: evidence from an Australian choice experiment," Development Research Unit Working Paper Series archive-47, Monash University, Department of Economics.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. Johannes Diederich & Timo Goeschl, 2014. "Willingness to Pay for Voluntary Climate Action and Its Determinants: Field-Experimental Evidence," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 57(3), pages 405-429, March.

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