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Willingness to pay for environmental quality and social capital influence in Sweden

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  • George Marbuah

    (Swedish University of Agricultural Sciences)

Abstract

The growing recognition of social capital as an important parameter necessary for shaping pro-environmental behaviour and attitudes is well established in the literature and continues to engage the attention of policymakers, academics and citizens in many jurisdictions. In this paper, we contribute to this strand of literature by investigating the extent to which various elements of social capital influences Swedish public’s tendency to contribute financially or through lifestyle changes in order to protect the environment. Using data from the latest wave of the International Social Survey Programme (ISSP) on the environment in 2010, we explore empirically the link between individuals’ willingness to pay (WTP) and social capital influence using an ordered logistic model. The results show, that, individuals in Sweden are fairly willing to pay for the environment and that this decision is principally and significantly influenced by elements of social capital. In particular, we find quite robust results to show that social and institutional trust, environmental group membership among related civic participation activities and adherence to environmental norms significantly impacts the probability of individuals’ decision to sacrifice toward environmental sustainability by paying higher environmental taxes, prices or through standard of living adjustments.

Suggested Citation

  • George Marbuah, 2016. "Willingness to pay for environmental quality and social capital influence in Sweden," Working Papers 2016.13, FAERE - French Association of Environmental and Resource Economists.
    • Handle: RePEc:fae:wpaper:2016.13
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    References listed on IDEAS

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    Cited by:

    1. Bin Zhao & Xin Huangfu, 2023. "The More Training, the More Willingness? A Positive Spillover Effect Analysis of Voluntary Behavior in Environmental Protection," Sustainability, MDPI, vol. 15(13), pages 1-16, June.
    2. Paula Vicente & Catarina Marques & Elizabeth Reis, 2021. "Willingness to Pay for Environmental Quality: The Effects of Pro-Environmental Behavior, Perceived Behavior Control, Environmental Activism, and Educational Level," SAGE Open, , vol. 11(4), pages 21582440211, November.

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    More about this item

    Keywords

    Willingness to pay; Social capital; Environmental protection; Ordered logistic regression; Sweden;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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