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Seemingly irrelevant factors and willingness to block polluting investments

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  • Ajzenman, Nicolás
  • Balza, Lenin
  • Bejarano, Hernan
  • De Los Rios, Camilo
  • Gómez Parra, Nicolás

Abstract

Using an online multi-country video-vignette survey experiment, we measure bias against extractive industries and foreign firms in individuals perceptions and preferences related to industrial projects with potential economic benefits and environmental costs. Individuals face a hypothetical industrial investment project with a randomly assigned implementing firm, which varies in one or two dimensions: nationality (foreign or national), and industrial sector (extractive or generic). We elicit several incentivized and non-incentivized measures of acceptance of hypothetical investments. We find a precisely estimated null effect on willingness to pay to block the projects across experimental treatments: respondents express similar reactions to the same information independently of the firms origin or industrial sector.

Suggested Citation

  • Ajzenman, Nicolás & Balza, Lenin & Bejarano, Hernan & De Los Rios, Camilo & Gómez Parra, Nicolás, 2023. "Seemingly irrelevant factors and willingness to block polluting investments," IDB Publications (Working Papers) 13325, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:13325
    DOI: http://dx.doi.org/10.18235/0005369
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    More about this item

    Keywords

    experimental economics; extractive industries; Perceptions; willingness– to–pay; valuation;
    All these keywords.

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels
    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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