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The Motivation behind Behavioral Thresholds: A Latent Class Approach

Author

Listed:
  • Nobuyuki Ito

    () (Division of Natural Resource Economics, Graduate School of Agriculture, Kyoto Univerisy)

  • Kenji Takeuchi

    () (Graduate School of Economics, Kobe University)

  • Takahiro Tsuge

    () (Faculty of Economics, Konan University)

  • Atsuo Kishimoto

    () (National Institute of Advanced Industrial Science and Technology)

Abstract

This paper extends Ito et al. (2010) to reveal whether altruism is an underlying motive of the behavioral thresholds. We also investigate the influence of environmental concern as one of the underlying motives of them. Applying contingent valuation (CV) methods, we conducted a stated preference survey to study people's cooperative behavior in the donation to Green Power Fund (GPF). We use latent class approach in order to examine the underlying motives of the thresholds. The results show that the participation rate in the donation to the GPF, which completely cancels out the amount of CO2 emission from a household's electricity consumption, is estimated as 59.24% at the psychosocial equilibrium when the suggested donation amount is 500 yen. We found that for a latent class with higher altruism and environmental concern there is a statistically significant impact of the equilibrium participation rate through behavioral thresholds.

Suggested Citation

  • Nobuyuki Ito & Kenji Takeuchi & Takahiro Tsuge & Atsuo Kishimoto, 2012. "The Motivation behind Behavioral Thresholds: A Latent Class Approach," Economics Bulletin, AccessEcon, vol. 32(3), pages 1831-1847.
  • Handle: RePEc:ebl:ecbull:eb-11-00650
    as

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    References listed on IDEAS

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    Cited by:

    1. Bartczak, Anna, 2015. "The role of social and environmental attitudes in non-market valuation," Forest Policy and Economics, Elsevier, vol. 50(C), pages 357-365.
    2. Anna Bartczak & Katarzyna Metelska-Szaniawska, 2015. "Should we pay, and to whom, for biodiversity enhancement in private forests? An empirical study of attitudes towards payments for forest ecosystem services in Poland," Working Papers 2015-20, Faculty of Economic Sciences, University of Warsaw.

    More about this item

    Keywords

    green electricity fund; contingent valuation; threshold model; critical mass; latent class model; double-bounded dichotomous choice;

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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