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The Profile of a “Warm-Glower”: A Note on Consumer’s Behavior and Public Policy Implications

Author

Listed:
  • Paulo A.L.D. Nunes

    (University Ca' Foscari of Venice and Fondazione Eni Enrico Mattei)

  • Laura Onofri

    (Department of Economics, University of Bologna and University Ca' Foscari of Venice)

Abstract

The paper focuses on the ongoing debate on non-market valuation, including the valuation environmental goods, and the opportunity to use contingent valuation for policy guidance. In fact, contingent valuation critics argue that reported willingness to pay answers do not reflect real economic preferences and, for this reason, should not be used in cost-benefit analysis The attempt to contravene such critique finds many supporters. This paper starts from the latter stream of research and adds two original contributions. First, it sheds light on the individual warm glow motivational profile, exploring the empirical relationship between individual’s socio-economic characteristics and warm glow. Second, it discusses some implications of the presence of warm glow for public policy.

Suggested Citation

  • Paulo A.L.D. Nunes & Laura Onofri, 2004. "The Profile of a “Warm-Glower”: A Note on Consumer’s Behavior and Public Policy Implications," Working Papers 2004.113, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2004.113
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    References listed on IDEAS

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    1. Kahnemant, Daniel & Knetsch, Jack L., 1992. "Contingent valuation and the value of public goods: Reply," Journal of Environmental Economics and Management, Elsevier, vol. 22(1), pages 90-94, January.
    2. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-1458, December.
    3. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-477, June.
    4. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, December.
    5. Andreoni, James, 1988. "Privately provided public goods in a large economy: The limits of altruism," Journal of Public Economics, Elsevier, vol. 35(1), pages 57-73, February.
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    Cited by:

    1. Nijkamp, Peter & Vindigni, Gabriella & Nunes, Paulo A.L.D., 2008. "Economic valuation of biodiversity: A comparative study," Ecological Economics, Elsevier, vol. 67(2), pages 217-231, September.

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    More about this item

    Keywords

    Economic value; Contingent valuation; Willingness to pay; Latent factor; Consumer motivations; Warm glow; Ego driven warm glow; Social oriented warm glow; Public policy design;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources

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