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Does institutional context affect preference formation? Evidence from a stated preference valuation study

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  • Kyriaki Remoundou
  • Yiannis Kountouris
  • Phoebe Koundouri

    (Dept. of International and European Economic Studies, Athens University of Economics and Business)

Abstract

In this paper we employ a choice experiment to test the effect of the institution responsible for the management of an environmental good, on stated preferences. Specifically, we examine whether respondents� valuation of a forest restoration program in Greece is different under (a) European Commission and (b) National State management. Following a split sample approach and accounting for preference heterogeneity, we find that the institutional context is neutral to preference formation for the environmental good in question although there are significant differences in the trust levels reported for the two institutions considered.

Suggested Citation

  • Kyriaki Remoundou & Yiannis Kountouris & Phoebe Koundouri, 2010. "Does institutional context affect preference formation? Evidence from a stated preference valuation study," DEOS Working Papers 1006, Athens University of Economics and Business.
  • Handle: RePEc:aue:wpaper:1006
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