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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

This study aims to show how Australian households perceive climate change and what they are prepared to do to reduce the harmful effects of climate change. A web-based survey in November 2008 asked approximately 600 New South Wales households about their willingness to pay additional household expenses caused by the Carbon Pollution Reduction Scheme (CPRS) proposed by the Australian government. The Contingent Valuation Method (CVM), a widely used non-market valuation technique, was applied. Results of the study show there is a positive demand to mitigate climate change in Australia resulting from a wish to avoid climate change. Households’ willingness to pay (WTP) for climate change was, however, significantly curbed as households was uncertain about the extent of climate change and whether climate change policies are effective. Australian household support for the CPRS is influenced by schemes of other major greenhouse gas emitting countries (global co-operation). Only when people who didn’t answer the survey are assumed to value climate change mitigation the same as people who did answer the survey, do the benefits of the CPRS, as estimated by respondents’ WTP, exceed its costs.

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Bibliographic Info

Paper provided by Australian National University, Environmental Economics Research Hub in its series Research Reports with number 94819.

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Date of creation: Feb 2009
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Handle: RePEc:ags:eerhrr:94819

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Keywords: Contingent valuation; climate change; Carbon Pollution Reduction Scheme; willingness to pay; uncertainty; Australia; Environmental Economics and Policy; Resource /Energy Economics and Policy;

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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. 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.
  5. 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.
  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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