Risk Perceptions, Voluntary Contributions and Environmental Policy
AbstractThis article study the impact of risk perception on environmental policy. The environmental quality is uncertain and can be improved by voluntary contributions. We introduce then an heterogeneity in individuals' risk perceptions. In this context, the social optimum can be decentralized by tax financed government subsidies to private provision. We distinguish the case of a government who represents perfectly agents' preferences from the case of a government with its own risk preferences. In the two cases, we show that neutrality still holds.
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Bibliographic InfoPaper provided by Université Panthéon-Sorbonne (Paris 1) in its series Cahiers de la Maison des Sciences Economiques with number v04097.
Length: 20 pages
Date of creation: Oct 2004
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Risk perception; pessimism; optimism; environmental quality.;
Other versions of this item:
- Etner, Johanna & Jeleva, Meglena & Jouvet, Pierre-Andre, 2007. "Risk perceptions, voluntary contributions and environmental policy," Research in Economics, Elsevier, vol. 61(3), pages 130-139, September.
- D89 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Other
- D69 - Microeconomics - - Welfare Economics - - - Other
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-03-13 (All new papers)
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