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Paying for Mitigation: A Multiple Country Study

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Author Info

  • Carlsson, Fredrik

    ()
    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Kataria, Mitesh

    ()
    (Max Planck Institute of Economics, Jena, Germany)

  • Krupnick, Alan

    ()
    (Resources for the Future, Washington, DC, USA)

  • Lampi, Elina

    ()
    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Löfgren, Åsa

    ()
    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Qin, Ping

    ()
    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Chung, Susie

    ()
    (Resources for the Future, Washington, DC, USA)

  • Sterner, Thomas

    ()
    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

Unique survey data from a contingent valuation study conducted in three different countries (China, Sweden, and the United States) were used to investigate the ordinary citizen’s willingness to pay (WTP) for reducing CO2 emissions. We find that a large majority of the respondents in all three countries believe that the mean global temperature has increased over the last 100 years and that humans are responsible for the increase. A smaller share of Americans, however, believes these statements, when compared to the Chinese and Swedes. A larger share of Americans is also pessimistic and believes that nothing can be done to stop climate change. We also find that Sweden has the highest WTP for reductions of CO2, while China has the lowest. Thus, even though the Swedes and Chinese are similar to each other in their attitudes toward climate change, they differ considerably in their WTP. When WTP is measured as a share of household income, the willingness to pay is the same for Americans and Chinese, while again higher for the Swedes.

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File URL: http://hdl.handle.net/2077/22355
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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 447.

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Length: 24 pages
Date of creation: 17 May 2010
Date of revision:
Publication status: Published as Carlsson, Fredrik, Mitesh Kataria, Alan Krupnick, Elina Lampi, Åsa Löfgren, Ping Qin, Susie Chung and Thomas Sterner, 'Paying for Mitigation: A Multiple Country Study' in Land Economics, 2012, pages 326-340.
Handle: RePEc:hhs:gunwpe:0447

Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Keywords: Climate change; willingness to pay; multi-country; China; United States; Sweden;

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References

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  1. Cameron, Trudy Ann, 2005. "Individual option prices for climate change mitigation," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 283-301, February.
  2. Akter, Sonia & Bennett, Jeffrey W., 2009. "Household perceptions of climate change and preferences for mitigation action: the case of the Carbon Pollution Reduction Scheme in Australia," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 47936, Australian Agricultural and Resource Economics Society.
  3. Wiser, Ryan H., 2007. "Using contingent valuation to explore willingness to pay for renewable energy: A comparison of collective and voluntary payment vehicles," Ecological Economics, Elsevier, vol. 62(3-4), pages 419-432, May.
  4. Nomura, Noboru & Akai, Makoto, 2004. "Willingness to pay for green electricity in Japan as estimated through contingent valuation method," Applied Energy, Elsevier, vol. 78(4), pages 453-463, August.
  5. Li, Hui & Jenkins-Smith, Hank C. & Silva, Carol L. & Berrens, Robert P. & Herron, Kerry G., 2009. "Public support for reducing US reliance on fossil fuels: Investigating household willingness-to-pay for energy research and development," Ecological Economics, Elsevier, vol. 68(3), pages 731-742, January.
  6. Berrens, Robert P. & Bohara, Alok K. & Jenkins-Smith, Hank C. & Silva, Carol L. & Weimer, David L., 2004. "Information and effort in contingent valuation surveys: application to global climate change using national internet samples," Journal of Environmental Economics and Management, Elsevier, vol. 47(2), pages 331-363, March.
  7. Layton, David F. & Levine, Richard A., 2003. "How Much Does the Far Future Matter? A Hierarchical Bayesian Analysis of the Public's Willingness to Mitigate Ecological Impacts of Climate Change," Journal of the American Statistical Association, American Statistical Association, vol. 98, pages 533-544, January.
  8. Krupnick, Alan & Alberini, Anna & Simon, Nathalie & Cooper, Maureen, 2004. "Willingness to Pay for Mortality Risk Reductions: Does Latency Matter?," Discussion Papers dp-04-13, Resources For the Future.
  9. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-75, June.
  10. Solomon, Barry D. & Johnson, Nicholas H., 2009. "Valuing climate protection through willingness to pay for biomass ethanol," Ecological Economics, Elsevier, vol. 68(7), pages 2137-2144, May.
  11. Hansla, Andre & Gamble, Amelie & Juliusson, Asgeir & Garling, Tommy, 2008. "Psychological determinants of attitude towards and willingness to pay for green electricity," Energy Policy, Elsevier, vol. 36(2), pages 768-774, February.
  12. Beilei Cai & Trudy Cameron & Geoffrey Gerdes, 2010. "Distributional Preferences and the Incidence of Costs and Benefits in Climate Change Policy," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 46(4), pages 429-458, August.
  13. David F. Layton & Gardner Brown, 2000. "Heterogeneous Preferences Regarding Global Climate Change," The Review of Economics and Statistics, MIT Press, vol. 82(4), pages 616-624, November.
  14. Fredrik Carlsson & Olof Johansson-Stenman, 2000. "Willingness to pay for improved air quality in Sweden," Applied Economics, Taylor & Francis Journals, vol. 32(6), pages 661-669.
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Citations

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Cited by:
  1. Fredrik Carlsson & Mitesh Kataria & Alan Krupnick & Elina Lampi & Asa Löfgren & Ping Qin & Thomas Sterner & Susie Chung, 2010. "The Truth, the Whole Truth, and Nothing but the Truth A Multiple Country Test of an Oath Script," Jena Economic Research Papers 2010-076, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  2. Andersson, David & Löfgren, Åsa & Widerberg, Anna, 2011. "Attitudes to Personal Carbon Allowances," Working Papers in Economics 505, University of Gothenburg, Department of Economics.
  3. Frederik Carlsson & Mitesh Kataria & Alan Krupnick & Elina Lampi & Åsa Löfgren & Ping Qin & Thomas Sterner & S. Chung, 2010. "A Fair Share - Burden-Sharing Preferences in the United States and China," Jena Economic Research Papers 2010-074, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  4. Löschel, Andreas & Sturm, Bodo & Uehleke, Reinhard, 2013. "Revealed preferences for climate protection when the purely individual perspective is relaxed: Evidence from a framed field experiment," ZEW Discussion Papers 13-006, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. Löschel, Andreas & Sturm, Bodo & Vogt, Carsten, 2013. "The demand for climate protection—Empirical evidence from Germany," Economics Letters, Elsevier, vol. 118(3), pages 415-418.
  6. 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.
  7. Emanuele Massetti & Elena Claire Ricci, 2011. "Super-Grids and Concentrated Solar Power: A Scenario Analysis with the WITCH Model," Working Papers 2011.47, Fondazione Eni Enrico Mattei.
  8. 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.

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