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Decision-making in a Social Welfare Context

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  • Helen Scarborough

    ()

  • Michael Burton

    ()

  • Jeff Bennett

    ()

Abstract

This paper presents analysis of the decision-making strategies adopted by respondents when confronted with potential environmental policy options that include changes in both aggregate levels of welfare and equity in distribution. The analysis is based on the results of a choice experiment designed to estimate intergenerational distribution preferences. Non-linear welfare functions are employed within a conventional conditional logit framework. The heuristics employed by respondents in the stated preference context provide valuable insights into the application of welfare principles by respondents in determining trade-offs between the potential changes in the well-being of different generations.

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File URL: http://www.deakin.edu.au/buslaw/aef/workingpapers/papers/2009_2.pdf
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Bibliographic Info

Paper provided by Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance in its series Economics Series with number 2009_02.

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Length: 25
Date of creation: 11 Feb 2009
Date of revision:
Handle: RePEc:dkn:econwp:eco_2009_02

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Keywords: Intergenerational Equity; Distribution; Choice Modelling;

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  1. Johnstone, Nick & Alavalapati, Janaki R.R., 1998. "The Distributional Effects of Environmental Tax Reform," Discussion Papers, International Institute for Environment and Development, Environmental Economics Programme 24140, International Institute for Environment and Development, Environmental Economics Programme.
  2. Myles,Gareth D., 1995. "Public Economics," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521497695.
  3. Kopp, Raymond & Portney, Paul, 1997. "Mock Referenda for Intergenerational Decisionmaking," Discussion Papers, Resources For the Future dp-97-48, Resources For the Future.
  4. Sen, Amartya, 2000. "Social justice and the distribution of income," Handbook of Income Distribution, Elsevier, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 1, pages 59-85 Elsevier.
  5. Frank Krysiak & Daniela Krysiak, 2006. "Sustainability with Uncertain Future Preferences," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 33(4), pages 511-531, 04.
  6. Johansson,Per-Olov, 1987. "The Economic Theory and Measurement of Environmental Benefits," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521348102.
  7. Scarborough, Helen & Bennett, Jeff, 2008. "Estimating intergenerational distribution preferences," Ecological Economics, Elsevier, Elsevier, vol. 66(4), pages 575-583, July.
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