IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v69y2010i8p1675-1681.html
   My bibliography  Save this article

Income effects and the inconvenience of private provision of public goods for bads: The case of recycling in Finland

Author

Listed:
  • Huhtala, Anni

Abstract

Absent or weak income effects reported in many contingent valuation studies have cast doubt on the reliability of the survey method. We find that the income effect depends on the type of public good in question: there is a negative income effect for willingness to pay for recycling, which requires time and effort for sorting, but a positive effect for the more convenient incineration. Hence, high-income (low-income) individuals may display less (more) effort on environmental behavior. This stresses the importance of comprehensive distributional analyses when assessing alternative environmental policies.

Suggested Citation

  • Huhtala, Anni, 2010. "Income effects and the inconvenience of private provision of public goods for bads: The case of recycling in Finland," Ecological Economics, Elsevier, vol. 69(8), pages 1675-1681, June.
  • Handle: RePEc:eee:ecolec:v:69:y:2010:i:8:p:1675-1681
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921-8009(10)00114-X
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Cappellari, Lorenzo & Ghinetti, Paolo & Turati, Gilberto, 2011. "On time and money donations," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(6), pages 853-867.
    2. Gray, Wayne B. & Shadbegian, R.J.Ronald J., 2004. "'Optimal' pollution abatement--whose benefits matter, and how much?," Journal of Environmental Economics and Management, Elsevier, vol. 47(3), pages 510-534, May.
    3. Heleen Bartelings & Thomas Sterner, 1999. "Household Waste Management in a Swedish Municipality: Determinants of Waste Disposal, Recycling and Composting," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 13(4), pages 473-491, June.
    4. Bergstrom, Theodore C & Goodman, Robert P, 1973. "Private Demands for Public Goods," American Economic Review, American Economic Association, vol. 63(3), pages 280-296, June.
    5. Vicary, Simon, 2000. "Donations to a public good in a large economy," European Economic Review, Elsevier, vol. 44(3), pages 609-618, March.
    6. James Andreoni & Lise Vesterlund, 2001. "Which is the Fair Sex? Gender Differences in Altruism," The Quarterly Journal of Economics, Oxford University Press, vol. 116(1), pages 293-312.
    7. Huhtala, Anni & Pouta, Eija, 2008. "User fees, equity and the benefits of public outdoor recreation services," Journal of Forest Economics, Elsevier, vol. 14(2), pages 117-132, April.
    8. Richard T. Carson, 2011. "Contingent Valuation," Books, Edward Elgar Publishing, number 2489.
    9. W. Michael Hanemann, 1984. "Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(3), pages 332-341.
    10. Flores, Nicholas E. & Carson, Richard T., 1997. "The Relationship between the Income Elasticities of Demand and Willingness to Pay," Journal of Environmental Economics and Management, Elsevier, vol. 33(3), pages 287-295, July.
    11. Ornetzeder, Michael & Hertwich, Edgar G. & Hubacek, Klaus & Korytarova, Katarina & Haas, Willi, 2008. "The environmental effect of car-free housing: A case in Vienna," Ecological Economics, Elsevier, vol. 65(3), pages 516-530, April.
    12. Peter A. Diamond & Jerry A. Hausman, 1994. "Contingent Valuation: Is Some Number Better than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 45-64, Fall.
    13. Parry, Ian W. H., 2004. "Are emissions permits regressive?," Journal of Environmental Economics and Management, Elsevier, vol. 47(2), pages 364-387, March.
    14. West, Sarah E. & Williams, R.C.Roberton III, 2004. "Estimates from a consumer demand system: implications for the incidence of environmental taxes," Journal of Environmental Economics and Management, Elsevier, vol. 47(3), pages 535-558, May.
    15. Matthew J. Kotchen, 2009. "Voluntary Provision of Public Goods for Bads: A Theory of Environmental Offsets," Economic Journal, Royal Economic Society, vol. 119(537), pages 883-899, April.
    16. Kotchen, Matthew J. & Moore, Michael R., 2007. "Private provision of environmental public goods: Household participation in green-electricity programs," Journal of Environmental Economics and Management, Elsevier, vol. 53(1), pages 1-16, January.
    17. Amemiya, Takeshi, 1981. "Qualitative Response Models: A Survey," Journal of Economic Literature, American Economic Association, vol. 19(4), pages 1483-1536, December.
    18. West, Sarah E., 2004. "Distributional effects of alternative vehicle pollution control policies," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 735-757, March.
    19. Berglund, Christer, 2006. "The assessment of households' recycling costs: The role of personal motives," Ecological Economics, Elsevier, vol. 56(4), pages 560-569, April.
    20. Bengt Kristrom & Pere Riera, 1996. "Is the income elasticity of environmental improvements less than one?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 7(1), pages 45-55, January.
    21. Anni Huhtala & Eija Pouta, 2009. "Benefit Incidence of Public Recreation Areas—Have the Winners Taken Almost All?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 43(1), pages 63-79, May.
    22. Robison, H David, 1985. "Who Pays for Industrial Pollution Abatement?," The Review of Economics and Statistics, MIT Press, vol. 67(4), pages 702-706, November.
    23. Anni Huhtala, 2000. "Binary Choice Valuation Studies with Heteregeneous Preferences Regarding the Program Being Valued," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 16(3), pages 263-279, July.
    24. Schlapfer, Felix, 2006. "Survey protocol and income effects in the contingent valuation of public goods: A meta-analysis," Ecological Economics, Elsevier, vol. 57(3), pages 415-429, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Katarzyna Zagórska, 2016. "Impact of local and national social norm information on respondents’ choices regarding waste sorting at household level," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 44.
    2. Czajkowski, Mikołaj & Kądziela, Tadeusz & Hanley, Nick, 2014. "We want to sort! Assessing households’ preferences for sorting waste," Resource and Energy Economics, Elsevier, vol. 36(1), pages 290-306.
    3. Mikołaj Czajkowski & Nick Hanley & Karine Nyborg, 2014. "Social norms, morals and self-interest as determinants of pro-environment behaviour," Working Papers 2014-17, Faculty of Economic Sciences, University of Warsaw.
    4. repec:sss:wpaper:201403 is not listed on IDEAS
    5. Carmelo J. León & Jorge E. Araña & Javier León & Matías M. González, 2016. "The Economic Benefits of Reducing the Environmental Effects of Landfills: Heterogeneous Distance Decay Effects," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(1), pages 193-218, January.
    6. repec:eee:ecolec:v:140:y:2017:i:c:p:58-65 is not listed on IDEAS

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:69:y:2010:i:8:p:1675-1681. See general 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: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.