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Paying for Mitigation: A Multiple Country Study

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  • Carlsson, Fredrik
  • Kataria, Mitesh
  • Krupnick, Alan

    ()
    (Resources for the Future)

  • Lampi, Elina
  • Lofgren, Asa
  • Qin, Ping
  • Chung, Susie
  • Sterner, Thomas

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 found 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 found 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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Paper provided by Resources For the Future in its series Discussion Papers with number dp-10-12-efd.

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Date of creation: 25 May 2010
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Handle: RePEc:rff:dpaper:dp-10-12-efd

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Keywords: climate change; willingness to pay; multi-country; China; United States; Sweden;

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  1. 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.
  2. Trudy Ann Cameron, 2002. "Individual Option Prices for Climate Change Mitigation," University of Oregon Economics Department Working Papers 2003-9, University of Oregon Economics Department, revised 20 Jul 2002.
  3. 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.
  4. 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.
  5. Anna Alberini & Maureen Cropper & Alan Krupnick & Nathalie B. Simon, 2004. "Willingness to Pay for Mortality Risk Reductions: Does Latency Matter?," Working Papers 2004.53, Fondazione Eni Enrico Mattei.
  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. 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," Research Reports 94819, Australian National University, Environmental Economics Research Hub.
  8. Hoffmann, Sandra & Qin, Ping & Krupnick, Alan & Badrakh, Burmaajav & Batbaatar, Suvd & Altangerel, Enkhjargal & Sereeter, Lodoysamba, 2012. "The willingness to pay for mortality risk reductions in Mongolia," Resource and Energy Economics, Elsevier, vol. 34(4), pages 493-513.
  9. 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.
  10. 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.
  11. 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.
  12. 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.
  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. 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.
  15. 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. Carlsson, Fredrik & Kataria, Mitesh & Krupnick, Alan & Lampi, Elina & Löfgren, Åsa & Qin, Ping & Sterner, Thomas, 2013. "A fair share: Burden-sharing preferences in the United States and China," Resource and Energy Economics, Elsevier, vol. 35(1), pages 1-17.
  2. 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.
  3. Andersson, David & Löfgren, Åsa & Widerberg, Anna, 2011. "Attitudes to Personal Carbon Allowances," Working Papers in Economics 505, University of Gothenburg, Department of Economics.
  4. 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.
  5. Carlsson, Fredrik & Kataria, Mitesh & Krupnick, Alan & Lampi, Elina & Löfgren, Åsa & Qin, Ping & Sterner, Thomas, 2013. "The truth, the whole truth, and nothing but the truth—A multiple country test of an oath script," Journal of Economic Behavior & Organization, Elsevier, vol. 89(C), pages 105-121.
  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. Johannes Diederich & Timo Goeschl, 2014. "Willingness to Pay for Voluntary Climate Action and Its Determinants: Field-Experimental Evidence," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 57(3), pages 405-429, March.
  8. 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.
  9. Jing Dai & Andreas Ziegler & Martin Kesternich & Andreas Löschel, 2014. "Do Chinese individuals believe in global climate change and why? An econometric analysis," MAGKS Papers on Economics 201428, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  10. 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.

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