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Do EPA administrators recommend environmental policies that citizens want?

  • Fredrik Carlsson

    ()

    (Department of Economics, University of Gothenburg)

  • Mitesh Kataria

    ()

    (Max Planck Institute of Economics, Strategic Interaction Group, Jena)

  • Elina Lampi

    ()

    (Department of Economics, University of Gothenburg)

We investigate whether Swedish Environmental Protection Agency (EPA) administrator recommendations regarding improvements in environmental quality differ from citizen preferences. The scope and significance of the possible difference are assessed by conducting identical choice experiments on a random sample of Swedish citizens and a random sample of administrators working at the Swedish EPA. The experiment concerns two environmental quality objectives: a Balanced Marine Environment and Clean Air. The EPA administrators were asked to choose the alternatives they would recommend as a policy, while the citizens were asked to act as private persons. We find that the rankings of attributes differ between the two groups and that the willingness to pay (WTP) obtained from the choices made by the administrators is higher for five out of the seven attributes, and in some cases the difference between the WTPs is not only significant but also substantial. We also asked the administrators to motivate their choices in the experiment, and the main motive was ecological sustainability.

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Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2009-057.

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Date of creation: 06 Aug 2009
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Handle: RePEc:jrp:jrpwrp:2009-057
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  1. Ted O'Donoghue & Matthew Rabin, 2003. "Studying Optimal Paternalism, Illustrated by a Model of Sin Taxes," American Economic Review, American Economic Association, vol. 93(2), pages 186-191, May.
  2. Peter Martinsson, 2002. "Using Choice Experiments for Non-Market Valuation," EEPSEA Special and Technical Paper sp200205t2, Economy and Environment Program for Southeast Asia (EEPSEA), revised May 2002.
  3. Nyborg, Karine, 2000. "Homo Economicus and Homo Politicus: interpretation and aggregation of environmental values," Journal of Economic Behavior & Organization, Elsevier, vol. 42(3), pages 305-322, July.
  4. Colombo, S. & Angus, A. & Morris, J. & Parsons, D.J. & Brawn, M. & Stacey, K. & Hanley, N., 2009. "A comparison of citizen and "expert" preferences using an attribute-based approach to choice," Ecological Economics, Elsevier, vol. 68(11), pages 2834-2841, September.
  5. Norman Gemmell & Oliver Morrissey & Abuzer Pinar, 2004. "Tax perceptions and preferences over tax structure in the united kingdom," Economic Journal, Royal Economic Society, vol. 114(493), pages F117-F138, 02.
  6. repec:cup:cbooks:9780521894753 is not listed on IDEAS
  7. Fredrik Carlsson & Peter Martinsson, 2003. "Design techniques for stated preference methods in health economics," Health Economics, John Wiley & Sons, Ltd., vol. 12(4), pages 281-294.
  8. Wendy Kenyon & Nick Hanley & Ceara Nevin, 2001. "Citizens' juries: an aid to environmental valuation?," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 19(4), pages 557-566, August.
  9. Henrik Hammar & Sverker C. Jagers & Katarina Nordblom, 2008. "Attitudes towards Tax Levels: A Multi-Tax Comparison," Fiscal Studies, Institute for Fiscal Studies, vol. 29(4), pages 523-543, December.
  10. Kenneth Train, 2003. "Discrete Choice Methods with Simulation," Online economics textbooks, SUNY-Oswego, Department of Economics, number emetr2.
  11. Hammar, Henrik & Jagers, Sverker C. & Nordblom, Katarina, 2006. "What explains attitudes towards tax levels? A multi-tax comparison," Working Papers in Economics 225, University of Gothenburg, Department of Economics.
  12. Bromley, Daniel W., 1990. "The ideology of efficiency: Searching for a theory of policy analysis," Journal of Environmental Economics and Management, Elsevier, vol. 19(1), pages 86-107, July.
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