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Can Stated Preference Methods Accurately Predict Responses to Environmental Policies? The Case of a Plastic Bag Regulation in China

Listed author(s):
  • He, Haoran

    ()

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

This study investigates the validity of using stated preference (SP) estimates to predict policy effects on plastic bag consumption. Before implementation of a plastic bag regulation, when bags were still free of charge, we utilized an SP survey to elicit consumers’ contingent bag consumption in certain possible pricing scenarios. Following implementation of the regulation mandating charging for bags, we conducted another survey to collect actual consumption information. We thus have unique data to compare stated and revealed consumption. The comparison results show that consumers’ behavioral reactions to a policy change can be predicted reasonably well with SP techniques.

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File URL: http://hdl.handle.net/2077/22327
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Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 444.

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Length: 41 pages
Date of creation: 06 May 2010
Handle: RePEc:hhs:gunwpe:0444
Contact details of provider: Postal:
Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden

Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/

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  1. Lusk, Jayson L. & Pruitt, J.R. & Norwood, Bailey, 2006. "External validity of a framed field experiment," Economics Letters, Elsevier, vol. 93(2), pages 285-290, November.
  2. Elina Lampi & Matilda Orth, 2009. "Who Visits the Museums? A Comparison between Stated Preferences and Observed Effects of Entrance Fees," Kyklos, Wiley Blackwell, vol. 62(1), pages 85-102, February.
  3. Jae Bong Chang & Jayson L. Lusk & F. Bailey Norwood, 2007. "How Closely Do Hypothetical Surveys and Laboratory Experiments Predict Field Behavior?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(2), pages 518-534.
  4. Gary Burtless, 1995. "The Case for Randomized Field Trials in Economic and Policy Research," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 63-84, Spring.
  5. He, Haoran, 2010. "The Effects of an Environmental Policy on Consumers: Lessons from the Chinese Plastic Bag Regulation," Working Papers in Economics 453, University of Gothenburg, Department of Economics.
  6. John List & Craig Gallet, 2001. "What Experimental Protocol Influence Disparities Between Actual and Hypothetical Stated Values?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(3), pages 241-254, November.
  7. Richard T. Carson & Nicholas E. Flores & Kerry M. Martin & Jennifer L. Wright, 1996. "Contingent Valuation and Revealed Preference Methodologies: Comparing the Estimates for Quasi-Public Goods," Land Economics, University of Wisconsin Press, vol. 72(1), pages 80-99.
  8. Steven D. Levitt & John A. List, 2007. "What Do Laboratory Experiments Measuring Social Preferences Reveal About the Real World?," Journal of Economic Perspectives, American Economic Association, vol. 21(2), pages 153-174, Spring.
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