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Institutions, Culture, and Wetland Values

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  • Chaikumbung, Mayula

    () (Kasetsart University)

  • Doucouliagos, Chris

    () (Deakin University)

  • Scarborough, Helen

    () (Deakin University)

Abstract

Do institutions and culture affect environmental values? In this article we analyze 1,041 environmental valuations of 223 wetlands in 38 developing countries, to examine the effect of institutions and culture on environmental values. We assess three dimensions of institutional quality: economic freedom, democracy, and good governance. We also consider the impact of cultural differences. Possibly surprisingly, wetland values are lower in more market based economies and they are lower in cultures that are more indulgent and authoritarian. In contrast, improved government effectiveness increases wetland valuations. Understanding these important and varying effects of institutions and culture on wetland valuations is important for policy development and environmental preservation.

Suggested Citation

  • Chaikumbung, Mayula & Doucouliagos, Chris & Scarborough, Helen, 2018. "Institutions, Culture, and Wetland Values," IZA Discussion Papers 11848, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp11848
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    Keywords

    institutions; culture; wetlands; valuations; environmental preferences; meta-regression;
    All these keywords.

    JEL classification:

    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • H4 - Public Economics - - Publicly Provided Goods
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P48 - Economic Systems - - Other Economic Systems - - - Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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