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Do causes of environmental problems affect Hicksian equivalent surplus? Evidence from the field

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  • Bulte, E.H.

    (Tilburg University, School of Economics and Management)

  • Gerking, S.D.

    (Tilburg University, School of Economics and Management)

  • List, J.A.
  • de Zeeuw, A.J.

    (Tilburg University, School of Economics and Management)

Abstract

Measuring preferences via stated methods remains the only technique to obtain the total economic value of a non-marketed good or service. This study examines if alternative causes of an environmental problem affect individual statements of compensation demanded. Making use of a unique sample drawn from the Netherlands, we find that Hicksian equivalent surplus (ES) is not significantly affected by causes of environmental harm. While our finding that agents only care about outcomes, rather than causes, is consonant with standard applications of utility theory, it is at odds with some recent experimental findings measuring the effects of cause on Hicksian compensating surplus (CS).
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Bulte, E.H. & Gerking, S.D. & List, J.A. & de Zeeuw, A.J., 2004. "Do causes of environmental problems affect Hicksian equivalent surplus? Evidence from the field," Other publications TiSEM 7afdfa06-d7c0-4a0a-ada7-2, Tilburg University, School of Economics and Management.
    • Handle: RePEc:tiu:tiutis:7afdfa06-d7c0-4a0a-ada7-26e83bdc7181
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    References listed on IDEAS

    as
    1. Bulte, Erwin & Gerking, Shelby & List, John A. & de Zeeuw, Aart, 2005. "The effect of varying the causes of environmental problems on stated WTP values: evidence from a field study," Journal of Environmental Economics and Management, Elsevier, vol. 49(2), pages 330-342, March.
    2. Kahneman, Daniel & Ritov, Ilana, 1994. "Determinants of Stated Willingness to Pay for Public Goods: A Study in the Headline Method," Journal of Risk and Uncertainty, Springer, vol. 9(1), pages 5-38, July.
    3. Baron, Jonathan & Ritov, Ilana, 1993. "Intuitions about Penalties and Compensation in the Context of Tort Law," Journal of Risk and Uncertainty, Springer, vol. 7(1), pages 17-33, August.
    4. John A. List, 2004. "Neoclassical Theory Versus Prospect Theory: Evidence from the Marketplace," Econometrica, Econometric Society, vol. 72(2), pages 615-625, March.
    5. John A. List, 2003. "Does Market Experience Eliminate Market Anomalies?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(1), pages 41-71.
    6. Irwin, Julie R., 1994. "Buying/Selling Price Preference Reversals: Preference for Environmental Changes in Buying versus Selling Modes," Organizational Behavior and Human Decision Processes, Elsevier, vol. 60(3), pages 431-457, December.
    7. Boyce, Rebecca R, et al, 1992. "An Experimental Examination of Intrinsic Values as a," American Economic Review, American Economic Association, vol. 82(5), pages 1366-1373, December.
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    More about this item

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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