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Which type of policy instrument do citizens and experts prefer? A choice experiment on Swedish marine and water policy

Author

Listed:
  • Ek, Claes

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

  • Elofsson, Katarina
  • Lagerkvist, Carl-Johan

Abstract

In the choice between alternative environmental policy instruments, economists tend to favor policies capable of attaining cost-efficiency, but other considerations may be important to stakeholders. We perform a choice experiment modeled on Swedish water and marine policy to estimate preferences for different types of environmental policy instruments among citizens and municipal experts. To approximate preferences for each instrument per se, choice sets include several attributes that respondents may otherwise view as correlated with instrument type, such as how costs are shared between taxpayers and farmers. In our mixed-logit regressions, both the modal citizen and the modal expert prefer direct regulation and subsidies to nutrient trading. Experts weight taxpayer costs less heavily, implying larger WTP estimates; in particular, nutrient trading is unlikely to deliver sufficiently large cost savings for experts to prefer it to other instrument types. This potentially explains the low takeup of water quality trading outside the US.

Suggested Citation

  • Ek, Claes & Elofsson, Katarina & Lagerkvist, Carl-Johan, 2018. "Which type of policy instrument do citizens and experts prefer? A choice experiment on Swedish marine and water policy," Working Papers in Economics 746, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0746
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    File URL: http://hdl.handle.net/2077/58220
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    Cited by:

    1. Bondemark, Anders & Andersson, Henrik & Brundell-Freij, Karin, 2023. "Do the distributional preferences of national infrastructure planners diverge from those of the public?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 170(C).

    More about this item

    Keywords

    choice experiments; instrument choice; nutrient trading; water policy;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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