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Does charity begin at home for air pollution reductions? Unraveling intra familial altruism

Author

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  • Chanel, Olivier
  • Luchini, Stéphane
  • Shogren, Jason F.

Abstract

We propose a structural econometric model that incorporates altruism towards other household members into the willingness to pay for a public good. The model distinguishes preferences for public good improvements for oneself from preferences for improvements for other household members. We test for three different types of altruism - ‘pure self-interest’, ‘pure altruism’ and ‘public-good-focused non-pure altruism’. Using French contingent valuation data regarding air quality improvements, we find positive and significant degrees of concern for children under the age of 18, which are explained by determinants related to health and subjective air quality assessment. All other forms of pure or air-quality-focused altruism within the family are insignificant, including for children over 18, siblings, spouses, and parents. This result suggests that benefit estimates that do not consider altruism could undervalue improvements in air quality in France.

Suggested Citation

  • Chanel, Olivier & Luchini, Stéphane & Shogren, Jason F., 2021. "Does charity begin at home for air pollution reductions? Unraveling intra familial altruism," Journal of choice modelling, Elsevier, vol. 38(C).
    • Handle: RePEc:eee:eejocm:v:38:y:2021:i:c:s1755534521000026
    DOI: 10.1016/j.jocm.2021.100268
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    Keywords

    Air pollution; Familial altruism; Field experiment; Contingent valuation; Willingness to pay;
    All these keywords.

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments

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