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Respondent uncertainty in a contingent market for carbon offsets

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  • Akter, Sonia
  • Brouwer, Roy
  • Brander, Luke
  • van Beukering, Pieter

Abstract

The main objective of this paper is to provide additional empirical evidence of what explains respondent uncertainty in contingent valuation (CV) and how this in turn affects stated willingness to pay (WTP). Air travelers asked to pay a carbon travel tax to offset carbon emissions from flying were asked how likely it is that they will actually pay if the tax is voluntary. When changing the market compliance imperative from a mandatory carbon tax to a voluntary contribution, a third of all air travelers consider it unlikely they will actually pay their stated WTP amount. An ordered probit estimation approach is applied to identify the sources of respondent uncertainty. Besides the bid price, respondent sense of responsibility and belief in the effectiveness of the voluntary carbon market are among the main reasons for the experienced uncertainty.

Suggested Citation

  • Akter, Sonia & Brouwer, Roy & Brander, Luke & van Beukering, Pieter, 2009. "Respondent uncertainty in a contingent market for carbon offsets," Ecological Economics, Elsevier, vol. 68(6), pages 1858-1863, April.
  • Handle: RePEc:eee:ecolec:v:68:y:2009:i:6:p:1858-1863
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    References listed on IDEAS

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    Cited by:

    1. Anderson, Blake & M'Gonigle, Michael, 2012. "Does ecological economics have a future?," Ecological Economics, Elsevier, vol. 84(C), pages 37-48.
    2. Claudia Schwirplies & Andreas Ziegler, 2015. "Offset carbon emissions or pay a price premium for avoiding them? A cross-country analysis of motives for climate protection activities," MAGKS Papers on Economics 201504, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    3. Akter, Sonia & Bennett, Jeffrey W., 2010. "Testing construct validity of verbal versus numerical measures of preference uncertainty in contingent valuation," Research Reports 94942, Australian National University, Environmental Economics Research Hub.
    4. Mimako Kobayashi & Klaus Moeltner & Kimberly Rollins, 2010. "Latent Thresholds Analysis of Choice Data with Multiple Bids and Response Options," Working Papers 10-001, University of Nevada, Reno, Department of Economics;University of Nevada, Reno , Department of Resource Economics.
    5. repec:ebd:wpaper:161 is not listed on IDEAS
    6. Stithou, Mavra, 2009. "Respondent Certainty and Payment Vehicle Effect in Contingent Valuation: an Empirical Study for the Conservation of Two Endangered Species in Zakynthos Island, Greece," Stirling Economics Discussion Papers 2009-21, University of Stirling, Division of Economics.
    7. Elcin Akcura, 2013. "Mandatory vs voluntary Payment for Green Electricity," Cambridge Working Papers in Economics 1339, Faculty of Economics, University of Cambridge.
    8. Ziegler, Andreas & Schwirplies, Claudia, 2014. "The determinants of voluntary carbon offsetting: A micro-econometric analysis of individuals from Germany and the United States," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100422, Verein für Socialpolitik / German Economic Association.
    9. Andreas Lange & Andreas Ziegler, 2012. "Offsetting versus Mitigation Activities to Reduce CO2 Emissions: A Theoretical and Empirical Analysis for the U.S. and Germany," MAGKS Papers on Economics 201218, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    10. Voltaire, Louinord & Pirrone, Claudio & Bailly, Denis, 2013. "Dealing with preference uncertainty in contingent willingness to pay for a nature protection program: A new approach," Ecological Economics, Elsevier, vol. 88(C), pages 76-85.
    11. Schwirplies, Claudia & Dütschke, Elisabeth & Schleich, Joachim & Ziegler, Andreas, 2017. "Consumers' willingness to offset their CO2 emissions from traveling: A discrete choice analysis of framing and provider contributions," Working Papers "Sustainability and Innovation" S05/2017, Fraunhofer Institute for Systems and Innovation Research (ISI).
    12. Ziegler, Andreas & Schwarzkopf, Julia & Hoffmann, Volker H., 2012. "Stated versus revealed knowledge: Determinants of offsetting CO2 emissions from fuel consumption in vehicle use," Energy Policy, Elsevier, vol. 40(C), pages 422-431.
    13. Costa, Cristina Amaro da & Santos, José Lima, 2016. "Estimating the demand curve for sustainable use of pesticides from contingent-valuation data," Ecological Economics, Elsevier, vol. 127(C), pages 121-128.
    14. Akcura, Elcin, 2015. "Mandatory versus voluntary payment for green electricity," Ecological Economics, Elsevier, vol. 116(C), pages 84-94.
    15. repec:spr:waterr:v:31:y:2017:i:13:d:10.1007_s11269-017-1733-3 is not listed on IDEAS
    16. repec:wsi:wepxxx:v:03:y:2017:i:01:n:s2382624x16500193 is not listed on IDEAS
    17. repec:eee:jeeman:v:84:y:2017:i:c:p:209-222 is not listed on IDEAS
    18. Jorge Araña & Carmelo León, 2013. "Can Defaults Save the Climate? Evidence from a Field Experiment on Carbon Offsetting Programs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(4), pages 613-626, April.
    19. Andreas Lange & Andreas Ziegler, 2017. "Offsetting Versus Mitigation Activities to Reduce $$\hbox {CO}_{2}$$ CO 2 Emissions: A Theoretical and Empirical Analysis for the U.S. and Germany," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(1), pages 113-133, January.
    20. Ahmet Tolunay & Çağlar Başsüllü, 2015. "Willingness to Pay for Carbon Sequestration and Co-Benefits of Forests in Turkey," Sustainability, MDPI, Open Access Journal, vol. 7(3), pages 1-27, March.
    21. Balderas Torres, Arturo & MacMillan, Douglas C. & Skutsch, Margaret & Lovett, Jon C., 2015. "Reprint of ‘Yes-in-my-backyard’: Spatial differences in the valuation of forest services and local co-benefits for carbon markets in México," Ecological Economics, Elsevier, vol. 117(C), pages 283-294.
    22. Balderas Torres, Arturo & MacMillan, Douglas C. & Skutsch, Margaret & Lovett, Jon C., 2015. "‘Yes-in-my-backyard’: Spatial differences in the valuation of forest services and local co-benefits for carbon markets in México," Ecological Economics, Elsevier, vol. 109(C), pages 130-141.

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