Income inequality and willingness to pay for environmental public goods

Baumgärtner, Stefan; Drupp, Moritz A.; Meya, Jasper N.; Munz, Jan M.; Quaas, Martin F.

doi:10.1016/j.jeem.2017.04.005

Cited by 83 publications

(28 citation statements)

References 48 publications

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“…Income could be an important confounder in this association, since ethnicity, education level and income are known to be interrelated. It has been established that WTP estimates are positively influenced by income, for obvious reasons that people with higher income have more ability to pay . Hence, it is plausible that as immigrant parents have less financial resources, they are less able to invest in oral health products and oral health care, even if they value prevention of children's oral diseases highly.…”

Section: Discussionmentioning

confidence: 99%

Parents’ willingness to invest in their children's oral health

Berendsen

Bonifácio

Gemert-Schriks

et al. 2017

J Public Health Dent

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Section: Discussionmentioning

confidence: 99%

Parents’ willingness to invest in their children's oral health

Berendsen

Bonifácio

Gemert-Schriks

et al. 2017

J Public Health Dent

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“…The only estimation route that currently provides estimates of the (constant) elasticity of substitution is a recently rediscovered way of indirectly inferring it through its relation to the income elasticity of WTP (Baumgärtner et al 2015a(Baumgärtner et al , 2016Yu and Abler 2010). Based on Kovenock and Sadka (1981), Ebert (2003) has shown that the income elasticity of WTP for the ecosystem service ξ has an inverse relationship to the elasticity of substitution between a composite manufactured consumption good and the ecosystem service σ for the case of the CES utility function (i.e.…”

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confidence: 99%

Limits to Substitution Between Ecosystem Services and Manufactured Goods and Implications for Social Discounting

Drupp

2016

Environ Resource Econ

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This paper examines implications of limits to substitution for estimating substitutability between ecosystem services and manufactured goods and for social discounting. Based on a model that accounts for a subsistence requirement in the consumption of ecosystem services, we provide empirical evidence on substitution elasticities. We nd an initial mean elasticity of substitution of two, which declines over time towards complementarity. We subsequently extend the theory of dual discounting by introducing a subsistence requirement. The relative price of ecosystem services is non-constant and grows without bound as the consumption of ecosystem services declines towards the subsistence level. An application suggests that the initial discount rate for ecosystem services is more than a percentage-point lower as compared to manufactured goods. This dierence increases by a further half percentage-point over a 300-year time horizon. The results underscore the importance of considering limited substitutability in long-term public project appraisal. JEL-Classication: Q01, Q57, H43, D61, D90

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“…An important issue to take into consideration in our study is whether aggregated WTPs would be affected by the financial position of our respondents. The demand for biodiversity conservation and the capacity to meet this demand increase with a nation’s wealth (Jacobsen and Hanley 2009 ), as the social WTP for environmental goods depends on the level of income and its distribution (Breffle et al 2015 , Baumgärtner et al 2017 ). In the literature equity adjustment factors have been proposed to correct welfare measures estimated from less wealthy people because of income constrains, ranging from around 13% (Breffle et al 2015 ) to 16% (Baumgärtner et al 2017 ).…”

Section: Discussionmentioning

confidence: 99%

How much Fear? Exploring the Role of Integral Emotions on Stated Preferences for Wildlife Conservation

Notaro

Grilli

2022

Environmental Management

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Scientific evidence suggests that emotions affect actual human decision-making, particularly in highly emotionally situations such as human-wildlife interactions. In this study we assess the role of fear on preferences for wildlife conservation, using a discrete choice experiment. The sample was split into two treatment groups and a control. In the treatment groups the emotion of fear towards wildlife was manipulated using two different pictures of a wolf, one fearful and one reassuring, which were presented to respondents during the experiment. Results were different for the two treatments. The assurance treatment lead to higher preferences and willingness to pay for the wolf, compared to the fear treatment and the control, for several population sizes. On the other hand, the impact of the fear treatment was lower than expected and only significant for large populations of wolves, in excess of 50 specimen. Overall, the study suggests that emotional choices may represent a source of concern for the assessment of stable preferences. The impact of emotional choices is likely to be greater in situations where a wildlife-related topic is highly emphasized, positively or negatively, by social networks, mass media, and opinion leaders. When stated preferences towards wildlife are affected by the emotional state of fear due to contextual external stimuli, welfare analysis does not reflect stable individual preferences and may lead to sub-optimal conservation policies. Therefore, while more research is recommended for a more accurate assessment, it is advised to control the decision context during surveys for potential emotional choices.

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Income inequality and willingness to pay for environmental public goods

Cited by 83 publications

References 48 publications

Parents’ willingness to invest in their children's oral health

Parents’ willingness to invest in their children's oral health

Limits to Substitution Between Ecosystem Services and Manufactured Goods and Implications for Social Discounting

How much Fear? Exploring the Role of Integral Emotions on Stated Preferences for Wildlife Conservation

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