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Do past states and causes of soil degradation affect interest and stated willingness-to-pay values? Evidence from a quasi-experimental survey

Do past states and causes of soil degradation affect interest and stated willingness-to-pay... Departing from standard applications of utility theory where only outcomes matter, we investigate whether past states of an environmental medium (lost state versus net gain) and alternative causes (human cause versus natural cause) of an environmental problem affect respondents' interest in and willingness-to-pay to improve it. We use a quasi-experimental survey over a random sample of citizens in a small region of France. Respondents stated their perceived value of solving an environmental problem related to soil degradation. We find that respondents' interest is somewhat affected by the combination of past states and alternative causes whereas results on stated willingness-to-pay are inconclusive. Our results suggest that loss aversion can be mitigated depending on the presence and nature of the cause of the environmental problem in question. Keywords: behavioural economics; field experiment; loss aversion; soil degradation; willingness-to-pay; reference-dependence. Reference to this paper should be made as follows: Beretti, A. and Grolleau, G. (2016) ` and stated willingness-to-pay values? Evidence from a quasi-experimental survey', Int. J. Sustainable Development, Vol. 19, No. 1, pp.54­75. Biographical notes: Antoine Beretti has a PhD in Economics of the University of Montpellier 1 and Montpellier SupAgro (LAMETA). His recent work has focused on using behavioural insights http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Sustainable Development Inderscience Publishers

Do past states and causes of soil degradation affect interest and stated willingness-to-pay values? Evidence from a quasi-experimental survey

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Publisher
Inderscience Publishers
Copyright
Copyright © 2016 Inderscience Enterprises Ltd.
ISSN
0960-1406
eISSN
1741-5268
DOI
10.1504/IJSD.2016.073670
Publisher site
See Article on Publisher Site

Abstract

Departing from standard applications of utility theory where only outcomes matter, we investigate whether past states of an environmental medium (lost state versus net gain) and alternative causes (human cause versus natural cause) of an environmental problem affect respondents' interest in and willingness-to-pay to improve it. We use a quasi-experimental survey over a random sample of citizens in a small region of France. Respondents stated their perceived value of solving an environmental problem related to soil degradation. We find that respondents' interest is somewhat affected by the combination of past states and alternative causes whereas results on stated willingness-to-pay are inconclusive. Our results suggest that loss aversion can be mitigated depending on the presence and nature of the cause of the environmental problem in question. Keywords: behavioural economics; field experiment; loss aversion; soil degradation; willingness-to-pay; reference-dependence. Reference to this paper should be made as follows: Beretti, A. and Grolleau, G. (2016) ` and stated willingness-to-pay values? Evidence from a quasi-experimental survey', Int. J. Sustainable Development, Vol. 19, No. 1, pp.54­75. Biographical notes: Antoine Beretti has a PhD in Economics of the University of Montpellier 1 and Montpellier SupAgro (LAMETA). His recent work has focused on using behavioural insights

Journal

International Journal of Sustainable DevelopmentInderscience Publishers

Published: Jan 1, 2016

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