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Pessimism or optimism: a justification to voluntary contributions toward environmental quality

Author

Listed:
  • Johana Etner

    (GAINS et EUREQua)

  • Meglena Jeleva

    (LEN-C3E et EUREQua)

Abstract

This arrticle analyzes the determinants of voluntary contribution to environmental quality by introducing the perception of the environmental risk. The environmental quality is assumed uncertain and influenced by current quality and individuals' contributions. We consider individuals who are aware both of the impact of their voluntary contributions and of the quality of the current environment on the future quality of environment. Agents' preferences are represented by the RDEU model. We show that the contribution level results from two effects: a wealth effect (environmental or financial) and a risk one. It appears that wealth effects (unless for extreme wealth levels) is not sufficient to explain the implication of agents in the improvement of the environmental quality and that risk and attitude towards risk should be taken into account

Suggested Citation

  • Johana Etner & Meglena Jeleva, 2004. "Pessimism or optimism: a justification to voluntary contributions toward environmental quality," Cahiers de la Maison des Sciences Economiques v04099, Université Panthéon-Sorbonne (Paris 1).
    • Handle: RePEc:mse:wpsorb:v04099
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    Cited by:

    1. Etner, Johanna & Jeleva, Meglena & Jouvet, Pierre-Andre, 2007. "Risk perceptions, voluntary contributions and environmental policy," Research in Economics, Elsevier, vol. 61(3), pages 130-139, September.
    2. Benjamin Ouvrard & Sandrine Spaeter, 2016. "Environmental Incentives: Nudge or Tax?," Working Papers of BETA 2016-23, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    3. Boun My, Kene & Ouvrard, Benjamin, 2019. "Nudge and tax in an environmental public goods experiment: Does environmental sensitivity matter?," Resource and Energy Economics, Elsevier, vol. 55(C), pages 24-48.
    4. Marianne Lefebvre & Jesus Barreiro‐Hurlé & Jens Rommel, 2021. "Un‐nudgeable Nudgers: An Experiment on Voluntary Contribution to an Academic Network Working on the CAP. A Note," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 628-634, June.
    5. Benjamin Ouvrard & Sandrine Spaeter, 2016. "Environmental Incentives: Nudge or Tax?," Working Papers 2016.15, FAERE - French Association of Environmental and Resource Economists.
    6. Maria José Montoya Villalobos, 2021. "Green consumption: The impact of trust and pessimism," EconomiX Working Papers 2021-9, University of Paris Nanterre, EconomiX.

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    More about this item

    Keywords

    Risk perception; pessimism; optimism; environmental quality;
    All these keywords.

    JEL classification:

    • D89 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Other
    • D69 - Microeconomics - - Welfare Economics - - - Other
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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