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The effect of varying the causes of environmental problems on stated WTP values: evidence from a field study

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  • Bulte, Erwin
  • Gerking, Shelby
  • List, John A.
  • de Zeeuw, Aart

Abstract

Standard applications of utility theory assume that utility depends solely on outcomes and not on causes. This study uses a field experiment conducted in the Netherlands to determine if alternative causes of an environmental problem affect willingness to pay to ameliorate it. We find evidence supporting the hypothesis that people are willing to pay significantly more to correct problems caused by humans than by nature (the "outrage effect"), but find no support for the hypothesis that "moral responsibility" matters. We also find support for the hypothesis that stated willingness to pay values obtained via "cheap talk" and "consequential" treatments are lower than without inclusion of these protocols.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

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  • Bulte, Erwin & Gerking, Shelby & List, John A. & de Zeeuw, Aart, 2005. "The effect of varying the causes of environmental problems on stated WTP values: evidence from a field study," Journal of Environmental Economics and Management, Elsevier, vol. 49(2), pages 330-342, March.
    • Handle: RePEc:eee:jeeman:v:49:y:2005:i:2:p:330-342
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    1. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, Oxford University Press, vol. 114(3), pages 817-868.
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    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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