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A Test of Cheap Talk in Different Hypothetical Contexts: The Case of Air Pollution

  • Dominique Ami
  • Frédéric Aprahamian
  • Olivier Chanel

    ()

  • Stéphane Luchini

We explore the influence of a neutral cheap talk script in three typical scenarios used in the CV literature devoted to the valuation of air pollution effects. We show that cheap talk has a differentiated effect depending on the scenario implemented. It decreases protest responses with no effect on WTP values in the scenario based on a new drug. When a move to a less polluted city is involved, it has no effect on protest responses but decreases WTP values. Surprisingly, cheap talk increases protest responses but decreases WTP values when new regional air pollution regulations are at stake.

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Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 50 (2011)
Issue (Month): 1 (September)
Pages: 111-130

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Handle: RePEc:kap:enreec:v:50:y:2011:i:1:p:111-130
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100263

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