IDEAS home Printed from https://ideas.repec.org/p/ags/aare09/47936.html
   My bibliography  Save this paper

Household perceptions of climate change and preferences for mitigation action: the case of the Carbon Pollution Reduction Scheme in Australia

Author

Listed:
  • Akter, Sonia
  • Bennett, Jeffrey W.

Abstract

The study aims to reveal Australian households’ perceptions of climate change and their preferences for climate change mitigation actions. A web-based survey was conducted in November 2008 in which about 600 New South Wales households were asked for their willingness to bear extra household expenditure to support the ‘Carbon Pollution Reduction Scheme (CPRS)’ as proposed by the Australian government. The Contingent Valuation Method (CVM), a widely used non-market valuation technique, was applied using the single bounded dichotomous choice elicitation format. Results of the study demonstrate that, currently, there is a positive demand for climate change mitigation action in Australia. The main motivation for this positive demand stems from a desire to avoid climate change. However, society’s willingness to pay (WTP) for climate change mitigation is shown to be significantly curbed by uncertainties regarding the extent of climate change and the effectiveness of climate change policy. Global cooperation (major greenhouse gas emitting countries implementing similar scheme) plays an important role in determining Australian households’ support for the CPRS. Only when cooperation is assumed, do the benefits of the CPRS, as estimated by respondents’ WTP, exceed its costs.

Suggested Citation

  • Akter, Sonia & Bennett, Jeffrey W., 2009. "Household perceptions of climate change and preferences for mitigation action: the case of the Carbon Pollution Reduction Scheme in Australia," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 47936, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare09:47936
    DOI: 10.22004/ag.econ.47936
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/47936/files/Akter%202.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.47936?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Anna Alberini & Paolo Rosato & Alberto Longo & Valentina Zanatta, 2005. "Information and Willingness to Pay in a Contingent Valuation Study: The Value of S. Erasmo in the Lagoon of Venice," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 48(2), pages 155-175.
    2. John Whitehead & Ju-Chin Huang & Glenn Blomquist & Richard Ready, 1998. "Construct Validity of Dichotomous and Polychotomous Choice Contingent Valuation Questions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(1), pages 107-116, January.
    3. Dominika Parry Dziegielewska & Robert Mendelsohn, 2005. "Valuing Air Quality in Poland," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 30(2), pages 131-163, February.
    4. R. K. Blamey & J. W. Bennett & M. D. Morrison, 1999. "Yea-Saying in Contingent Valuation Surveys," Land Economics, University of Wisconsin Press, vol. 75(1), pages 126-141.
    5. Boyle, Kevin J. & Welsh, Michael P. & Bishop, Richard C., 1988. "Validation of empirical measures of welfare change: comment," MPRA Paper 31237, University Library of Munich, Germany.
    6. Garnaut,Ross, 2008. "The Garnaut Climate Change Review," Cambridge Books, Cambridge University Press, number 9780521744447, October.
    7. Roe, Brian & Teisl, Mario F. & Levy, Alan & Russell, Matthew, 2001. "US consumers' willingness to pay for green electricity," Energy Policy, Elsevier, vol. 29(11), pages 917-925, September.
    8. Macmillan, Douglas & Hanley, Nick & Buckland, Steve, 1996. "A Contingent Valuation Study of Uncertain Environmental Gains," Scottish Journal of Political Economy, Scottish Economic Society, vol. 43(5), pages 519-533, November.
    9. Bishop, Richard C. & Heberlein, Thomas A., 1979. "Measuring Values Of Extramarket Goods: Are Indirect Measures Biased?," 1979 Annual Meeting, July 29-August 1, Pullman, Washington 277818, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Berrens, Robert P. & Bohara, Alok K. & Jenkins-Smith, Hank C. & Silva, Carol L. & Weimer, David L., 2004. "Information and effort in contingent valuation surveys: application to global climate change using national internet samples," Journal of Environmental Economics and Management, Elsevier, vol. 47(2), pages 331-363, March.
    11. Batley, S. L. & Colbourne, D. & Fleming, P. D. & Urwin, P., 2001. "Citizen versus consumer: challenges in the UK green power market," Energy Policy, Elsevier, vol. 29(6), pages 479-487, May.
    12. Jones, Nikoleta & Sophoulis, Costas M. & Malesios, Chrisovaladis, 2008. "Economic valuation of coastal water quality and protest responses: A case study in Mitilini, Greece," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2478-2491, December.
    13. Cameron, Trudy Ann, 2005. "Individual option prices for climate change mitigation," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 283-301, February.
    14. Mary Riddel & W. Shaw, 2006. "A theoretically-consistent empirical model of non-expected utility: An application to nuclear-waste transport," Journal of Risk and Uncertainty, Springer, vol. 32(2), pages 131-150, March.
    15. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-719, November.
    16. Banfi, Silvia & Farsi, Mehdi & Filippini, Massimo & Jakob, Martin, 2008. "Willingness to pay for energy-saving measures in residential buildings," Energy Economics, Elsevier, vol. 30(2), pages 503-516, March.
    17. מחקר - ביטוח לאומי, 2006. "Summary for 2005," Working Papers 29, National Insurance Institute of Israel.
    18. Ready Richard C. & Whitehead John C. & Blomquist Glenn C., 1995. "Contingent Valuation When Respondents Are Ambivalent," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 181-196, September.
    19. David F. Layton & Gardner Brown, 2000. "Heterogeneous Preferences Regarding Global Climate Change," The Review of Economics and Statistics, MIT Press, vol. 82(4), pages 616-624, November.
    20. Kenyon, Wendy & Nevin, Ceara, 2001. "The use of economic and participatory approaches to assess forest development: a case study in the Ettrick Valley," Forest Policy and Economics, Elsevier, vol. 3(1-2), pages 69-80, September.
    21. Bente Halvorsen, 1996. "Ordering effects in contingent valuation surveys," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 8(4), pages 485-499, December.
    22. Richard Carson & Theodore Groves, 2007. "Incentive and informational properties of preference questions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 181-210, May.
    23. Jaeseung Lee & Trudy Cameron, 2008. "Popular Support for Climate Change Mitigation: Evidence from a General Population Mail Survey," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 41(2), pages 223-248, October.
    24. -, 2009. "The economics of climate change," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 38679, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    25. Richard C. Ready & Dayuan Hu, 1995. "Statistical Approaches to the Fat Tail Problem for Dichotomous Choice Contingent Valuation," Land Economics, University of Wisconsin Press, vol. 71(4), pages 491-499.
    26. Kahn, Barbara E & Sarin, Rakesh K, 1988. "Modeling Ambiguity in Decisions under Uncertainty," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(2), pages 265-272, September.
    27. Daniel Ellsberg, 1961. "Risk, Ambiguity, and the Savage Axioms," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 75(4), pages 643-669.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alló, Maria & Loureiro, Maria L., 2014. "The role of social norms on preferences towards climate change policies: A meta-analysis," Energy Policy, Elsevier, vol. 73(C), pages 563-574.
    2. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    3. Liao, Shu-Yi & Tseng, Wei-Chun & Chen, Chi-Chung, 2010. "Eliciting public preference for nuclear energy against the backdrop of global warming," Energy Policy, Elsevier, vol. 38(11), pages 7054-7069, November.
    4. Dalia Streimikiene & Tomas Balezentis & Ilona Alisauskaite-Seskiene & Gintare Stankuniene & Zaneta Simanaviciene, 2019. "A Review of Willingness to Pay Studies for Climate Change Mitigation in the Energy Sector," Energies, MDPI, vol. 12(8), pages 1-38, April.
    5. Hanemann, W. Michael & Kanninen, Barbara, 1996. "The Statistical Analysis Of Discrete-Response Cv Data," CUDARE Working Papers 25022, University of California, Berkeley, Department of Agricultural and Resource Economics.
    6. Masahide Watanabe & Toshio Fujimi, 2015. "Evaluating Change in Objective Ambiguous Mortality Probability: Valuing Reduction in Ambiguity Size and Risk Level," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 60(1), pages 1-15, January.
    7. Tuan, Tran Huu & Navrud, Stale, 2009. "Applying the dissonance-minimising format to value cultural heritage in developing countries," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(3), pages 1-17.
    8. Alberini, Anna & Ščasný, Milan & Bigano, Andrea, 2018. "Policy- v. individual heterogeneity in the benefits of climate change mitigation: Evidence from a stated-preference survey," Energy Policy, Elsevier, vol. 121(C), pages 565-575.
    9. Sonia Akter & Jeff Bennett, 2013. "Preference uncertainty in stated preference studies: facts and artefacts," Applied Economics, Taylor & Francis Journals, vol. 45(15), pages 2107-2115, May.
    10. Rolfe, John & Dyack, Brenda, 2010. "Testing for convergent validity between travel cost and contingent valuation estimates of recreation values in the Coorong, Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(4), pages 1-17.
    11. Seon-Ae Kim & Jeffrey M. Gillespie & Krishna P. Paudel, 2008. "Rotational grazing adoption in cattle production under a cost-share agreement: does uncertainty have a role in conservation technology adoption?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(3), pages 235-252, September.
    12. Carson, Richard T. & Louviere, Jordan J. & Wei, Edward, 2010. "Alternative Australian climate change plans: The public's views," Energy Policy, Elsevier, vol. 38(2), pages 902-911, February.
    13. Fredrik Carlsson & Mitesh Kataria & Alan Krupnick & Elina Lampi & Åsa Löfgren & Ping Qin & Susie Chun & Thomas Sterner, 2012. "Paying for Mitigation: A Multiple Country Study," Land Economics, University of Wisconsin Press, vol. 88(2), pages 326-340.
    14. Jones, Nikoleta & Sophoulis, Costas M. & Malesios, Chrisovaladis, 2008. "Economic valuation of coastal water quality and protest responses: A case study in Mitilini, Greece," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2478-2491, December.
    15. Yoo, Seung-Hoon & Kwak, So-Yoon, 2009. "Willingness to pay for green electricity in Korea: A contingent valuation study," Energy Policy, Elsevier, vol. 37(12), pages 5408-5416, December.
    16. Timothy C. Haab & Kenneth E. McConnell, "undated". "Intuitive Bounds on Willingness to Pay," Working Papers 9609, East Carolina University, Department of Economics.
    17. Patricia Champ & Richard Bishop, 2001. "Donation Payment Mechanisms and Contingent Valuation: An Empirical Study of Hypothetical Bias," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(4), pages 383-402, August.
    18. Lee, Juyong & Cho, Youngsang, 2020. "Estimation of the usage fee for peer-to-peer electricity trading platform: The case of South Korea," Energy Policy, Elsevier, vol. 136(C).
    19. Riddel, Mary C. & Shaw, W. Douglass, 2006. "A Theoretically-Consistent Empirical Non-Expected Utility Model of Ambiguity: Nuclear Waste Mortality Risk and Yucca Mountain," Pre-Prints 23964, Texas A&M University, Department of Agricultural Economics.
    20. Lucinio Júdez & de Rosario Andrés & Carlos Pérez Hugalde & Elvira Urzainqui & Miguel Ibáñez, 1998. "Évaluation contingente de l’usage récréatif d’une réserve naturelle humide," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 48, pages 37-60.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:ags:aare09:47936. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaresea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.