Property Consciousness And The Difference Between Wtp And Wta
AbstractIt is well known in Environmental Economics that payment offered on the Willingness to Pay (WTP) principle is much smaller than the compensation demanded on the Willingness to Accept (WTA) principle. Payment under WTP goes into the environment and is communally enjoyed, whereas compensation under WTA goes into one’s bank account. Public goods/benefits are valued less than private goods/benefits, due to technical reasons, as well as ‘pure property consciousness’. This explains why WTP is much less than WTA. It is suggested here that the ratio of WTP to WTA can be taken as an index of socialisation of property consciousness. A value of zero would indicate complete individualism, while a value of 1 would indicate an indifference between public and private forms of enjoyment of environmental benefits. It is interesting to note that this ratio is generally less than ½, (95% confidence interval: 0.8 £ q £ 0.38). The measure has a wide range of application. It can be derived from the difference in valuation of any quasi public good that can also be privately supplied and enjoyed. And its measurement may throw light on the failures and successes of co- operative/public/collective property based experiments.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series Public Economics with number 0504001.
Length: 4 pages
Date of creation: 04 Apr 2005
Date of revision:
Note: Type of Document - pdf; pages: 4
Contact details of provider:
Web page: http://188.8.131.52
Willingness to Pay; Willingness to Accept; Property consciousness; Socialisation;
Find related papers by JEL classification:
- A - General Economics and Teaching
- Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.