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Willingness to Pay for Environmental Quality: Testable Empirical Implications of the Growth and Environment Literature

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Abstract

Several different theoretical models of economic growth and environmental quality each generate inverse-U-shaped pollution-income paths, or "environmental Kuznets curves." They rely on different assumptions to generate the reversal of pollution trends, with correspondingly different policy implications. While the empirical implications for pollution are indistinguishable (by design), the models have distinct implications for the pattern of people's marginal willingness to pay (MWTP) for environmental improvements as a function of income. In this paper we demonstrate those different implications theoretically, and test for them empirically using data from the World Value Survey (WVS). We find strong relationships between MWTP and individual characteristics, such as age, income, and education, but little evidence that MWTP varies systematically with economic growth.

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Bibliographic Info

Paper provided by Georgetown University, Department of Economics in its series Working Papers with number gueconwpa~02-02-09.

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Date of creation: 09 Feb 2002
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Handle: RePEc:geo:guwopa:gueconwpa~02-02-09

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Postal: Georgetown University Department of Economics Washington, DC 20057-1036
Phone: 202-687-6074
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Web page: http://econ.georgetown.edu/

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Postal: Marcia Suss Administrative Officer Georgetown University Department of Economics Washington, DC 20057-1036
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Web: http://econ.georgetown.edu/

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Keywords: Earned World Values Survey; environmental Kuznets curve; environmental preferences.;

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Cited by:
  1. Dorsch, Michael, 2011. "The Willingness to Pay for Environmental Protection: Are Developing Economies Different?," Proceedings of the German Development Economics Conference, Berlin 2011 24, Verein für Socialpolitik, Research Committee Development Economics.
  2. E. Somanathan, 2010. "Effects of Information on Environmental Quality in Developing Countries," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(2), pages 275-292, Summer.
  3. Menz, Tobias & Welsch, Heinz, 2010. "Population aging and environmental preferences in OECD countries: The case of air pollution," Ecological Economics, Elsevier, vol. 69(12), pages 2582-2589, October.
  4. repec:ipg:wpaper:22 is not listed on IDEAS
  5. 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.
  6. Ian W.H. Parry & Hilary Sigman & Margaret Walls & Roberton C. Williams III, 2005. "The Incidence of Pollution Control Policies," NBER Working Papers 11438, National Bureau of Economic Research, Inc.
  7. Hersch, Joni & Viscusi, W. Kip, 2005. "The Generational Divide in Support for Environmental Policies: European Evidence," Working paper 108, Regulation2point0.
  8. Menz, Tobias & Welsch, Heinz, 2012. "Population aging and carbon emissions in OECD countries: Accounting for life-cycle and cohort effects," Energy Economics, Elsevier, vol. 34(3), pages 842-849.
  9. Benno Torgler & Maria A. Garcia-Valinas & Alison Macintyre, 2012. "Justifiability of Littering: An Empirical Investigation," Environmental Values, White Horse Press, vol. 21(2), pages 209-231, May.
  10. García-Valiñas, María A. & Macintyre, Alison & Torgler, Benno, 2012. "Volunteering, pro-environmental attitudes and norms," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(4), pages 455-467.
  11. Managi, Shunsuke, 2006. "Testing Increasing Returns to Pollution Abatement in Pesticides," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25524, International Association of Agricultural Economists.
  12. W. Kip Viscusi & Richard Zeckhauser, 2005. "The Perception and Valuation of the Risks of Climate Change: A Rational and Behavioral Blend," NBER Working Papers 11863, National Bureau of Economic Research, Inc.
  13. repec:ipg:wpaper:23 is not listed on IDEAS
  14. repec:ipg:wpaper:21 is not listed on IDEAS

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