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Payment vs. compensation for ecosystem services: do words have a voice in the design of environmental conservation programs?

Author

Listed:
  • Sophie Clot

    (Department of Economics - UOR - University of Reading)

  • Gilles Grolleau

    (LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier, Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier, CEREN - Centre de Recherche sur l'ENtreprise [Dijon] - BSB - Burgundy School of Business (BSB) - Ecole Supérieure de Commerce de Dijon Bourgogne (ESC))

  • Philippe Méral

    (GRED - Gouvernance, Risque, Environnement, Développement - UPVM - Université Paul-Valéry - Montpellier 3 - IRD [France-Sud] - Institut de Recherche pour le Développement - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier)

Abstract

We examine whether and how word choice can affect individual perceptions about a proposed Payments for Ecosystem Services (PES) program when objective outcomes are similar. From a traditional economic perspective, this type of manipulation would be considered unlikely to affect perceptions and behaviour, especially in the presence of pecuniary incentives and repeated decisions among sophisticated agents. From a behaviourally informed perspective, however, psychological and political theories of wording argue that word choice can have a significant impact on economic behaviour. To substantiate this discussion, we conduct a survey experiment that tests the impact of the words ‘payment' and ‘compensation' on favorability ratings of a proposed PES program. These preliminary findings suggest that the words used to describe public policies can be influential non-pecuniary interventions.

Suggested Citation

  • Sophie Clot & Gilles Grolleau & Philippe Méral, 2017. "Payment vs. compensation for ecosystem services: do words have a voice in the design of environmental conservation programs?," Post-Print hal-01484844, HAL.
    • Handle: RePEc:hal:journl:hal-01484844
    DOI: 10.1016/j.ecolecon.2016.12.028
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    References listed on IDEAS

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    8. Kosoy, Nicolas & Martinez-Tuna, Miguel & Muradian, Roldan & Martinez-Alier, Joan, 2007. "Payments for environmental services in watersheds: Insights from a comparative study of three cases in Central America," Ecological Economics, Elsevier, vol. 61(2-3), pages 446-455, March.
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    Cited by:

    1. Vaissière, Anne-Charlotte & Quétier, Fabien & Calvet, Coralie & Levrel, Harold & Wunder, Sven, 2020. "Biodiversity offsets and payments for environmental services: Clarifying the family ties," Ecological Economics, Elsevier, vol. 169(C).
    2. Chan, Kai M.A. & Anderson, Emily & Chapman, Mollie & Jespersen, Kristjan & Olmsted, Paige, 2017. "Payments for Ecosystem Services: Rife With Problems and Potential—For Transformation Towards Sustainability," Ecological Economics, Elsevier, vol. 140(C), pages 110-122.
    3. Katherine Farrow & Gilles Grolleau & Naoufel Mzoughi, 2018. "What in the Word! The Scope for the Effect of Word Choice on Economic Behavior," Kyklos, Wiley Blackwell, vol. 71(4), pages 557-580, November.
    4. Grolleau, Gilles & Mzoughi, Naoufel & Peterson, Deborah & Tendero, Marjorie, 2022. "Changing the world with words? Euphemisms in climate change issues," Ecological Economics, Elsevier, vol. 193(C).
    5. Sonia Lequin & Gilles Grolleau & Naoufel Mzoughi, 2019. "Harnessing the power of identity to encourage farmers to protect the environment," Post-Print hal-01999647, HAL.
    6. Chapman, Mollie & Satterfield, Terre & Wittman, Hannah & Chan, Kai M.A., 2020. "A payment by any other name: Is Costa Rica’s PES a payment for services or a support for stewards?," World Development, Elsevier, vol. 129(C).
    7. Farrow, Katherine & Grolleau, Gilles & Mzoughi, Naoufel, 2018. "Less is more in energy conservation and efficiency messaging," Energy Policy, Elsevier, vol. 122(C), pages 1-6.
    8. Li, Meng & Lu, Shibao & Li, Wei, 2022. "Stakeholders′ ecological-economic compensation of river basin: A multi-stage dynamic game analysis," Resources Policy, Elsevier, vol. 79(C).
    9. Farrow, Katherine & Grolleau, Gilles & Mzoughi, Naoufel, 2021. "‘Let's call a spade a spade, not a gardening tool’: How euphemisms shape moral judgement in corporate social responsibility domains," Journal of Business Research, Elsevier, vol. 131(C), pages 254-267.
    10. Grillos, Tara & Bottazzi, Patrick & Crespo, David & Asquith, Nigel & Jones, Julia P.G., 2019. "In-kind conservation payments crowd in environmental values and increase support for government intervention: A randomized trial in Bolivia," Ecological Economics, Elsevier, vol. 166(C), pages 1-1.
    11. Dardanoni, Valentino & Guerriero, Carla, 2021. "Young people' s willingness to pay for environmental protection," Ecological Economics, Elsevier, vol. 179(C).

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    More about this item

    Keywords

    PES; wording effect; conservation; survey experiment; choice behavior; behavioral economics; value theory; public policy; service écosystémique; paiement service environnemental; compensation financiere; comportement de choix; évaluation de l'impact; perception mentale; économie comportementale; économie expérimentale; théorie économique; politique publique; intervention publique;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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