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More information isn’t always better: the case of voluntary provision of environmental quality

Author Info

Listed author(s):
  • Owen, Ann L.
  • Videras, Julio
  • Wu, Stephen

Abstract

This paper adds to the literature on the voluntary provision of public goods by showing that the warm glow that individuals gain depends on the perceived relative effectiveness of contributions. We use a new survey on pro-environment behaviors, attitudes, and knowledge and find that individuals act in accordance with their beliefs, regardless of whether or not these beliefs are accurate, and engage more frequently in activities that have a higher perceived impact on environmental quality. We find that low provision of the public good is greater among people who believe they cannot do much for the environment and do not consider themselves environmentalists.

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File URL: https://mpra.ub.uni-muenchen.de/11588/1/MPRA_paper_11588.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 11588.

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Date of creation: Sep 2008
Handle: RePEc:pra:mprapa:11588
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Web page: https://mpra.ub.uni-muenchen.de

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Keywords: warm glow; environmental quality; public goods contributions;

Other versions of this item:

Find related papers by JEL classification:
  • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
  • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

This paper has been announced in the following NEP Reports:

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  1. Konar, Shameek & Cohen, Mark A., 1997. "Information As Regulation: The Effect of Community Right to Know Laws on Toxic Emissions," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 109-124, January.
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  3. Shimshack, Jay P. & Ward, Michael B. & Beatty, Timothy K.M., 2007. "Mercury advisories: Information, education, and fish consumption," Journal of Environmental Economics and Management, Elsevier, vol. 53(2), pages 158-179, March.
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  12. Duncan, Brian, 2004. "A theory of impact philanthropy," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 2159-2180, August.
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  14. Berrens, Robert P. & Bohara, Alok K. & Jenkins-Smith, Hank C. & Silva, Carol L. & Weimer, David L., 2004. "Information and effort in contingent valuation surveys: application to global climate change using national internet samples," Journal of Environmental Economics and Management, Elsevier, vol. 47(2), pages 331-363, March.
  15. Kenkel, Donald S, 1991. "Health Behavior, Health Knowledge, and Schooling," Journal of Political Economy, University of Chicago Press, vol. 99(2), pages 287-305, April.
  16. Brekke, Kjell Arne & Kverndokk, Snorre & Nyborg, Karine, 2003. "An economic model of moral motivation," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 1967-1983, September.
  17. Khanna, Madhu & Quimio, Wilma Rose H. & Bojilova, Dora, 1998. "Toxics Release Information: A Policy Tool for Environmental Protection," Journal of Environmental Economics and Management, Elsevier, vol. 36(3), pages 243-266, November.
  18. Magali Delmas & Maria J. Montes-Sancho & Jay P. Shimshack, 2010. "Information Disclosure Policies: Evidence From The Electricity Industry," Economic Inquiry, Western Economic Association International, vol. 48(2), pages 483-498, 04.
  19. Matthew J. Kotchen, 2009. "Voluntary Provision of Public Goods for Bads: A Theory of Environmental Offsets," Economic Journal, Royal Economic Society, vol. 119(537), pages 883-899, 04.
  20. Michael Kremer & Edward Miguel, 2007. "The Illusion of Sustainability," The Quarterly Journal of Economics, Oxford University Press, vol. 122(3), pages 1007-1065.
  21. Erling Holden, 2004. "Towards sustainable consumption: do green households have smaller ecological footprints?," International Journal of Sustainable Development, Inderscience Enterprises Ltd, vol. 7(1), pages 44-58.
  22. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-1458, December.
  23. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-477, June.
  24. Ginger Zhe Jin & Phillip Leslie, 2003. "The Effect of Information on Product Quality: Evidence from Restaurant Hygiene Grade Cards," The Quarterly Journal of Economics, Oxford University Press, vol. 118(2), pages 409-451.
  25. Thogersen, John & Olander, Folke, 2002. "Human values and the emergence of a sustainable consumption pattern: A panel study," Journal of Economic Psychology, Elsevier, vol. 23(5), pages 605-630, October.
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Cited by:

  1. John C. Whitehead & Melissa S. Weddell & Peter A. Groothuis, 2016. "Mitigating Hypothetical Bias In Stated Preference Data: Evidence From Sports Tourism," Economic Inquiry, Western Economic Association International, vol. 54(1), pages 605-611, 01.
  2. Ann Owen & Julio Videras & Stephen Wu, 2010. "Identity and Environmentalism: The Influence of Community Characteristics," Review of Social Economy, Taylor & Francis Journals, vol. 68(4), pages 465-486.
  3. Geir Asheim, 2010. "Strategic Use of Environmental Information," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 46(2), pages 207-216, June.
  4. Prasenjit Sarkhel & Sarmila Banerjee & Somdutta Banerjee, 2016. "Willingness to pay before and after program implementation: the case of Municipal Solid Waste Management in Bally Municipality, India," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 18(2), pages 481-498, April.

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