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The Effect of Varying the Causes of Environmental Problems on Stated WTP Values: Evidence from a Field Study

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Author Info
Erwin Bulte
Shelby Gerking
John A. List
Aart de Zeeuw

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Abstract

Standard applications of utility theory assume that utility depends solely on outcomes and not on causes. This study uses a field experiment conducted in the Netherlands to determine if alternative causes of an environmental problem affect willingness to pay to ameliorate it. We find evidence supporting the hypothesis that people are willing to pay significantly more to correct problems caused by humans than by nature (the ‘‘outrage effect’’), but find no support for the hypothesis that ‘‘moral responsibility’’ matters. We also find support for the hypothesis that stated willingness to pay values obtained via ‘‘cheap talk’’ and ‘‘consequential’’ treatments are lower than without inclusion of these protocols.

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Paper provided by The Field Experiments Website in its series Framed Field Experiments with number 0015.

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Length: 13 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:feb:framed:0015

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Web page: http://www.fieldexperiments.com

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Related research
Keywords: Field experiment; endangered species; non-market valuation;

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Find related papers by JEL classification:
C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Cummings, Ronald G, et al, 1997. "Are Hypothetical Referenda Incentive Compatible?," Journal of Political Economy, University of Chicago Press, vol. 105(3), pages 609-21, June.
  2. Ernst Fehr & Simon Gachter, 2000. "Cooperation and Punishment in Public Goods Experiments," American Economic Review, American Economic Association, vol. 90(4), pages 980-994, September. [Downloadable!] (restricted)
    Other versions:
  3. Ronald G. Cummings & Laura Osborne Taylor, 1998. "Does Realism Matter in Contingent Valuation Surveys?," Land Economics, University of Wisconsin Press, vol. 74(2), pages 203-215. [Downloadable!] (restricted)
  4. Poe, Gregory L. & Clark, Jeremy & Schulze, William, 1997. "Can Hypothetical, Questions Predict Actual, Participation In Public Programs? A Field Validity Test Using A Provision Point Mechanism," Working Papers 7264, Cornell University, Department of Applied Economics and Management. [Downloadable!]
  5. Kahneman, Daniel & Ritov, Ilana, 1994. "Determinants of Stated Willingness to Pay for Public Goods: A Study in the Headline Method," Journal of Risk and Uncertainty, Springer, vol. 9(1), pages 5-38, July.
  6. John A. List & Jay Shogren, 2002. "Calibration of Willingness-to-Accept," Framed Field Experiments 0054, The Field Experiments Website. [Downloadable!]
    Other versions:
  7. Timothy C. Haab & Ju-Chin Huang & John C. Whitehead, 1999. "Are Hypothetical Referenda Incentive Compatible? A Comment," Journal of Political Economy, University of Chicago Press, vol. 107(1), pages 186-196, February. [Downloadable!] (restricted)
    Other versions:
  8. Subramanian, Uma & Cropper, Maureen, 2000. " Public Choices between Life Saving Programs: The Tradeoff between Qualitative Factors and Lives Saved," Journal of Risk and Uncertainty, Springer, vol. 21(1), pages 117-49, July. [Downloadable!] (restricted)
  9. John A. List, 2001. "Do Explicit Warnings Eliminate the Hypothetical Bias in Elicitation Procedures? Evidence from Field Auctions for Sportscards," American Economic Review, American Economic Association, vol. 91(5), pages 1498-1507, December. [Downloadable!] (restricted)
  10. Ronald G. Cummings & Laura O. Taylor, 1999. "Unbiased Value Estimates for Environmental Goods: A Cheap Talk Design for the Contingent Valuation Method," American Economic Review, American Economic Association, vol. 89(3), pages 649-665, June. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Boyd, James W., 2006. "The Non-Market Benefits of Nature: What Should Be Counted in Green GDP?," Discussion Papers dp-06-24, Resources For the Future. [Downloadable!]
  2. Benno Torgler & Bruno S. Frey & Clevo Wilson, 2007. "Environmental and Pro-Social Norms: Evidence from 30 Countries," School of Economics and Finance Discussion Papers and Working Papers Series 220, School of Economics and Finance, Queensland University of Technology. [Downloadable!]
    Other versions:
  3. Benno Torgler & María A. García Valiñas & Alison Macintyre, 2008. "Differences in Preferences Towards the Environment: The Impact of a Gender, Age and Parental Effect," Working Papers 2008.18, Fondazione Eni Enrico Mattei. [Downloadable!]
    Other versions:
  4. McCartney, Abbie, 2009. "The Policy Relevance of Choice Modelling: An Application to the Ningaloo and Proposed Capes Marine Parks," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 48033, Australian Agricultural and Resource Economics Society. [Downloadable!]
  5. Michael Farmer & Clifford Lipscomb, 2008. "Conservative dichotomous choice responses in the active policy setting: DC rejections below WTP," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 39(3), pages 223-246, March. [Downloadable!] (restricted)
  6. Gubanova, Tatiana & Adamowicz, W.L. & McMillan, Melville, 2009. "‘Pocket and Pot’: Hypothetical Bias in a No-Free-Riding Public Contribution Game," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49318, Agricultural and Applied Economics Association. [Downloadable!]
  7. Benno Torgler & María A. García Valiñas & Alison Macintyre, 2008. "Environmental Participation and Environmental Motivation," Working Papers 2008.95, Fondazione Eni Enrico Mattei. [Downloadable!]
    Other versions:
  8. Benno Torgler & María A.García-Valiñas & Alison Macintyre, 2008. "Justifiability of Littering: An Empirical Investigation," Working Papers 2008.59, Fondazione Eni Enrico Mattei. [Downloadable!]
    Other versions:
  9. Carlsson, Fredrik & Martinsson, Peter & Akay, Alpaslan, 2009. "The Effect of Power Outages and Cheap Talk on Willingness to Pay to Reduce Outages," IZA Discussion Papers 4307, Institute for the Study of Labor (IZA). [Downloadable!]
  10. Luiz Freitas & Jeffrey Wagner, 2007. "Capturing moral economic context," Economics Bulletin, Economics Bulletin, vol. 4(14), pages 1-10. [Downloadable!]
  11. Duke, Joshua M. & Johnston, Robert J., 2006. "Systematic Influences of Policy Implementation and Conservation Agents on Willingness to Pay for Land Preservation," 2006 Annual meeting, July 23-26, Long Beach, CA 21234, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  12. María A. García-Valiñas & Benno Torgler, 2008. "Impuestos y Protección Medioambiental: Un Análisis de las Preferencias Individuales a nivel Europeo," Working Papers 03-2008, Institute of Local Public Finance. [Downloadable!]
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