Pessimism or optimism : a justification to voluntary contributions toward environmental quality
AbstractThis arrticle analyzes the determinants of voluntary contribution to environmental quality by introducing the perception of the environmental risk. The environmental quality is assumed uncertain and influenced by current quality and individuals' contributions. We consider individuals who are aware both of the impact of their voluntary contributions and of the quality of the current environment on the future quality of environment. Agents' preferences are represented by the RDEU model. We show that the contribution level results from two effects : a wealth effect (environmental or financial) and a risk one. It appears that wealth effects (unless for extreme wealth levels) is not sufficient to explain the implication of agents in the improvement of the environmental quality and that risk and attitude towards risk should be taken into account.
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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 v04099.
Length: 14 pages
Date of creation: Oct 2004
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Risk perception; pessimism; optimism; environmental quality.;
Other versions of this item:
- Johanna Etner & Meglena Jeleva & Pierre-Andre Jouvet, 2009. "Pessimism Or Optimism: A Justification To Voluntary Contributions Toward Environmental Quality ," Australian Economic Papers, Wiley Blackwell, vol. 48(4), pages 308-319, December.
- 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-2004-12-12 (All new papers)
- NEP-ENV-2004-12-12 (Environmental Economics)
- NEP-RES-2004-12-12 (Resource Economics)
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