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The Role of Cultural Worldviews in Willingness to Pay for Environmental Policy


  • Paul A. Hindsley
  • O. Ashton Morgan


Recent research in the social psychology literature suggests that personally held beliefs may play a pivotal role in individuals’ acceptance of environmental policy. We extend previous work in this area by providing a contingent valuation method (CVM) framework that examines the interaction between cultural worldviews and willingness to pay for a policy that mitigates environmental risk. Results from a bivariate probit model indicate that individuals with communitarian and egalitarian worldviews are willing to pay significantly more for the environmental policy. We further investigate the role of cultural worldview on individuals’ support for, and valuation of, environmental policies that differ by their underlying cause. Again, cultural worldview is important and point estimates of mean willingness to pay increase if the proposed policy is designed to mitigate the effects of climate change-related issues as opposed to a more local pollution threat. Finally, results indicate that cultural worldviews also influence respondents’ perceived consequentiality with potentially important ramifications for eliciting stated preferences in a CVM framework. Key Words: Contingent valuation; cultural worldview; willingness to pay; environmental policy

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  • Paul A. Hindsley & O. Ashton Morgan, 2020. "The Role of Cultural Worldviews in Willingness to Pay for Environmental Policy," Working Papers 20-03, Department of Economics, Appalachian State University.
  • Handle: RePEc:apl:wpaper:20-03

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