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Demand for Environmental Quality: An Empirical Analysis of Consumer Behavior in Sweden

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  • Ghalwash, Tarek

    () (Department of Economics, Umeå University)

Abstract

In this paper we estimate the income elasticity of demand for recreational services and other traditional groups of goods in Sweden and test for potential changes in such estimates over the twentieth century. Due to the difficulty of directly observing the demand for recreational services, we employ an indirect methodology by using the demand for some outdoor goods as a proxy for the demand for recreational services. In line with most prior research, our results confirm the expectation that recreational services, as a public good, is a luxury good in Sweden. Our results also show that the income elasticities for traditional goods are stable over time, indicating that consumer preferences for expenditure on these specific commodities do not change over time.

Suggested Citation

  • Ghalwash, Tarek, 2006. "Demand for Environmental Quality: An Empirical Analysis of Consumer Behavior in Sweden," Umeå Economic Studies 676, Umeå University, Department of Economics.
  • Handle: RePEc:hhs:umnees:0676
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    References listed on IDEAS

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    1. Chalfant, James A, 1987. "A Globally Flexible, Almost Ideal Demand System," Journal of Business & Economic Statistics, American Statistical Association, vol. 5(2), pages 233-242, April.
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    Cited by:

    1. Brännlund, Runar & Ghalwash, Tarek, 2006. "The income-pollution relationship and the role of income distribution Evidence from Swedish household data," Umeå Economic Studies 677, Umeå University, Department of Economics.
    2. Brännlund, Runar & Ghalwash, Tarek, 2008. "The income-pollution relationship and the role of income distribution: An analysis of Swedish household data," Resource and Energy Economics, Elsevier, vol. 30(3), pages 369-387, August.
    3. Ghalwash, Tarek, 2006. "Income, Energy Taxation, and the Environment: An Econometric Analysis," Umeå Economic Studies 678, Umeå University, Department of Economics.
    4. repec:kap:enreec:v:68:y:2017:i:3:d:10.1007_s10640-016-0040-4 is not listed on IDEAS
    5. Edward B. Barbier & Mikołaj Czajkowski & Nick Hanley, 2017. "Is the Income Elasticity of the Willingness to Pay for Pollution Control Constant?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, pages 663-682.
    6. Martini, Chiara & Tiezzi, Silvia, 2014. "Is the environment a luxury? An empirical investigation using revealed preferences and household production," Resource and Energy Economics, Elsevier, vol. 37(C), pages 147-167.
    7. Dongfeng Chang & Apostolos Serletis, 2014. "The Demand For Gasoline: Evidence From Household Survey Data," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 29(2), pages 291-313, March.

    More about this item

    Keywords

    Household demand; environmental services; income elasticities; Engel curves;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources

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