IDEAS home Printed from https://ideas.repec.org/a/eee/resene/v34y2012i3p381-395.html
   My bibliography  Save this article

Is the value of an environmental public good sensitive to the providing institution?

Author

Listed:
  • Remoundou, Kyriaki
  • Kountouris, Yiannis
  • Koundouri, Phoebe

Abstract

In this paper we examine whether stated preferences and Willingness To Pay estimates, obtained in a choice experiment, are sensitive to the institutional context in which the good under evaluation is provided. Specifically, we examine the effects on valuation from employing two different institutions, an authority under the supervision of the National government and an authority under the supervision of an international body, the European Commission, as responsible for the design and implementation of a forest restoration project following a split sample approach. We find that coefficients of the utility model and Willingness To Pay estimates for all attributes are not statistically different between the two treatments. This is so despite the significant differences in the trust levels reported for the two institutions. We speculate that our results reflect the significance of the environmental good to the citizens given its local nature and the sheer size of the fire disaster.

Suggested Citation

  • Remoundou, Kyriaki & Kountouris, Yiannis & Koundouri, Phoebe, 2012. "Is the value of an environmental public good sensitive to the providing institution?," Resource and Energy Economics, Elsevier, vol. 34(3), pages 381-395.
    • Handle: RePEc:eee:resene:v:34:y:2012:i:3:p:381-395
    DOI: 10.1016/j.reseneeco.2012.03.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0928765512000164
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.reseneeco.2012.03.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jürgen Meyerhoff & Ulf Liebe, 2009. "Status Quo Effect in Choice Experiments: Empirical Evidence on Attitudes and Choice Task Complexity," Land Economics, University of Wisconsin Press, vol. 85(3), pages 515-528.
    2. Mikołaj Czajkowski & Nick Hanley, 2009. "Using Labels to Investigate Scope Effects in Stated Preference Methods," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 44(4), pages 521-535, December.
    3. Ronald G. Cummings & Laura Osborne Taylor, 1998. "Does Realism Matter in Contingent Valuation Surveys?," Land Economics, University of Wisconsin Press, vol. 74(2), pages 203-215.
    4. Tiziana Luisetti & Ian J. Bateman & R. Kerry Turner, 2011. "Testing the Fundamental Assumption of Choice Experiments: Are Values Absolute or Relative?," Land Economics, University of Wisconsin Press, vol. 87(2), pages 284-296.
    5. Kaval, Pamela & Loomis, John & Seidl, Andy, 2007. "Willingness-to-pay for prescribed fire in the Colorado (USA) wildland urban interface," Forest Policy and Economics, Elsevier, vol. 9(8), pages 928-937, May.
    6. Jürgen Meyerhoff & Ulf Liebe, 2008. "Do protest responses to a contingent valuation question and a choice experiment differ?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 39(4), pages 433-446, April.
    7. Riera, Pere & Mogas, Joan, 2004. "Evaluation of a risk reduction in forest fires in a Mediterranean region," Forest Policy and Economics, Elsevier, vol. 6(6), pages 521-528, October.
    8. David Hensher & William Greene, 2003. "The Mixed Logit model: The state of practice," Transportation, Springer, vol. 30(2), pages 133-176, May.
    9. Schlapfer, Felix, 2006. "Survey protocol and income effects in the contingent valuation of public goods: A meta-analysis," Ecological Economics, Elsevier, vol. 57(3), pages 415-429, May.
    10. Wiktor Adamowicz & Peter Boxall & Michael Williams & Jordan Louviere, 1998. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments and Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 64-75.
    11. Rolfe, John & Bennett, Jeffrey W. & Louviere, Jordan, 1997. "Stated values and reminders of substitute goods: Testing for framing effects with choice modelling," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(1), pages 1-20.
    12. Samuelson, William & Zeckhauser, Richard, 1988. "Status Quo Bias in Decision Making," Journal of Risk and Uncertainty, Springer, vol. 1(1), pages 7-59, March.
    13. Jacobsen, Jette Bredahl & Thorsen, Bo Jellesmark, 2010. "Preferences for site and environmental functions when selecting forthcoming national parks," Ecological Economics, Elsevier, vol. 69(7), pages 1532-1544, May.
    14. Gregory L. Poe & Kelly L. Giraud & John B. Loomis, 2005. "Computational Methods for Measuring the Difference of Empirical Distributions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(2), pages 353-365.
    15. Riccardo Scarpa & Mara Thiene & Kenneth Train, 2008. "Utility in Willingness to Pay Space: A Tool to Address Confounding Random Scale Effects in Destination Choice to the Alps," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(4), pages 994-1010.
    16. Ian J. Bateman & Richard T. Carson & Brett Day & Michael Hanemann & Nick Hanley & Tannis Hett & Michael Jones-Lee & Graham Loomes, 2002. "Economic Valuation with Stated Preference Techniques," Books, Edward Elgar Publishing, number 2639.
    17. Johnston, Robert J. & Swallow, Stephen K. & Weaver, Thomas F., 1999. "Estimating Willingness to Pay and Resource Tradeoffs with Different Payment Mechanisms: An Evaluation of a Funding Guarantee for Watershed Management," Journal of Environmental Economics and Management, Elsevier, vol. 38(1), pages 97-120, July.
    18. Dale Whittington, 2002. "Improving the Performance of Contingent Valuation Studies in Developing Countries," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 22(1), pages 323-367, June.
    19. Groothuis, Peter A & Miller, Gail, 1997. "The Role of Social Distrust in Risk-Benefit Analysis: A Study of the Siting of a Hazardous Waste Disposal Facility," Journal of Risk and Uncertainty, Springer, vol. 15(3), pages 241-257, December.
    20. Loomis, John, 2004. "Do nearby forest fires cause a reduction in residential property values?," Journal of Forest Economics, Elsevier, vol. 10(3), pages 149-157, November.
    21. John Bergstrom & Kevin Boyle & Mitsuyasu Yabe, 2004. "Trading Taxes vs. Paying Taxes to Value and Finance Public Environmental Goods," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 28(4), pages 533-549, August.
    22. Loomis, John B. & Gonzalez-Caban, Armando, 1998. "A willingness-to-pay function for protecting acres of spotted owl habitat from fire," Ecological Economics, Elsevier, vol. 25(3), pages 315-322, June.
    23. Jorgensen, Bradley S. & Syme, Geoffrey J., 2000. "Protest responses and willingness to pay: attitude toward paying for stormwater pollution abatement," Ecological Economics, Elsevier, vol. 33(2), pages 251-265, May.
    24. Adaman, Fikret & KaralI, Nihan & Kumbaroglu, Gürkan & Or, Ilhan & Özkaynak, Begüm & Zenginobuz, Ünal, 2011. "What determines urban households' willingness to pay for CO2 emission reductions in Turkey: A contingent valuation survey," Energy Policy, Elsevier, vol. 39(2), pages 689-698, February.
    25. Scarpa, R. & Thiene, M. & Train, K., 2008. "Appendix to Utility in WTP space: a tool to address confounding random scale effects in destination choice to the Alps," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 90(4), pages 1-9, January.
    26. Bond, Craig A. & Cullen, Kelly Giraud & Larson, Douglas M., 2009. "Joint estimation of discount rates and willingness to pay for public goods," Ecological Economics, Elsevier, vol. 68(11), pages 2751-2759, September.
    27. Danny Campbell & Riccardo Scarpa & W. Hutchinson, 2008. "Assessing the spatial dependence of welfare estimates obtained from discrete choice experiments," Letters in Spatial and Resource Sciences, Springer, vol. 1(2), pages 117-126, December.
    28. Paulo Nunes & Chiara Travisi, 2009. "Comparing Tax and Tax Reallocation Payments in Financing Rail Noise Abatement Programmes: Results from a Stated Choice Valuation Study in Italy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 43(4), pages 503-517, August.
    29. Neil A. Powe & Ian J. Bateman, 2004. "Investigating Insensitivity to Scope: A Split-Sample Test of Perceived Scheme Realism," Land Economics, University of Wisconsin Press, vol. 80(2), pages 258-271.
    30. Peter A. Diamond & Jerry A. Hausman, 1994. "Contingent Valuation: Is Some Number Better than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 45-64, Fall.
    31. M. Morrison & R. Blamey & J. Bennett, 2000. "Minimising Payment Vehicle Bias in Contingent Valuation Studies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 16(4), pages 407-422, August.
    32. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-719, November.
    33. Fredrik Carlsson & Peter Martinsson, 2003. "Design techniques for stated preference methods in health economics," Health Economics, John Wiley & Sons, Ltd., vol. 12(4), pages 281-294, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Perni, Ángel & Barreiro-Hurlé, Jesús & Martínez-Paz, José Miguel, 2020. "When policy implementation failures affect public preferences for environmental goods: Implications for economic analysis in the European water policy," Ecological Economics, Elsevier, vol. 169(C).
    2. Sagebiel, Julian & Müller, Jakob R. & Rommel, Jens, 2013. "Are Consumers Willing to Pay More for Electricity from Cooperatives? Results from an Online Choice Experiment in Germany," MPRA Paper 52385, University Library of Munich, Germany.
    3. Malte Oehlmann & Jürgen Meyerhoff, 2017. "Stated preferences towards renewable energy alternatives in Germany – do the consequentiality of the survey and trust in institutions matter?," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 6(1), pages 1-16, January.
    4. Misal, Haleema & Varela, Elsa & Voulgarakis, Apostolos & Rovithakis, Anastasios & Grillakis, Manolis & Kountouris, Yiannis, 2023. "Assessing public preferences for a wildfire mitigation policy in Crete, Greece," Forest Policy and Economics, Elsevier, vol. 153(C).
    5. De Ayala Bilbao, Amaya & Hoyos Ramos, David & Mariel Chladkova, Petr, 2012. "Landscape valuation through discrete choice experiments: Current practice and future research reflections," BILTOKI 1134-8984, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    2. Kyriaki Remoundou & Fikret Adaman & Phoebe Koundouri & Paulo Nunes, 2013. "Is the Value of Environmental Goods Sensitive to the Source of Public Funding? Evidence from a Marine Restoration Programme in the Black Sea," DEOS Working Papers 1321, Athens University of Economics and Business.
    3. Kyriaki Remoundou & Fikret Adaman & Phoebe Koundouri & Paulo Nunes, 2014. "Is the value of environmental goods sensitive to the public funding scheme? Evidence from a marine restoration programme in the Black Sea," Empirical Economics, Springer, vol. 47(4), pages 1173-1192, December.
    4. Kyriaki Remoundou & Fikret Adaman & Phoebe Koundouri & Paulo A.L.D. Nunes, 2011. "Are Preferences for Environmental Quality Sensitive to Financial Funding Schemes? Evidence from a Marine Restoration Programme in the Black Sea," Working Papers 2011.38, Fondazione Eni Enrico Mattei.
    5. Remoundou, Kyriaki & Kountouris, Yiannis & Koundouri, Phoebe, 2010. "Does institutional context affect preference formation? Evidence from a stated preference valuation study," MPRA Paper 122495, University Library of Munich, Germany.
    6. Jacobsen, Jette Bredahl & Lundhede, Thomas Hedemark & Martinsen, Louise & Hasler, Berit & Thorsen, Bo Jellesmark, 2011. "Embedding effects in choice experiment valuations of environmental preservation projects," Ecological Economics, Elsevier, vol. 70(6), pages 1170-1177, April.
    7. Richard T. Carson, 2011. "Contingent Valuation," Books, Edward Elgar Publishing, number 2489.
    8. Bruno Lanz & Allan Provins, 2015. "Using discrete choice experiments to regulate the provision of water services: do status quo choices reflect preferences?," Journal of Regulatory Economics, Springer, vol. 47(3), pages 300-324, June.
    9. Bruno Lanz & Allan Provins, 2012. "Do status quo choices reflect preferences? Evidence from a discrete choice experiment in the context of water utilities' investment planning," CEPE Working paper series 12-87, CEPE Center for Energy Policy and Economics, ETH Zurich.
    10. Voltaire, Louinord, 2012. "Effet d’une taxe et d’un droit d’entrée sur les consentements à payer des touristes pour de nouvelles réserves naturelles dans le golfe du Morbihan," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 92(02), pages 183-209, October.
    11. Wensing, Joana & Caputo, Vincenzina & Carraresi, Laura & Bröring, Stefanie, 2020. "The effects of green nudges on consumer valuation of bio-based plastic packaging," Ecological Economics, Elsevier, vol. 178(C).
    12. Kemper, Nathan & Nayga, Rodolfo M. Jr. & Popp, Jennie & Bazzani, Claudia, 2016. "The Effects of Honesty Oath and Consequentiality in Choice Experiments," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235381, Agricultural and Applied Economics Association.
    13. Niroomand, Naghmeh & Jenkins, Glenn P., 2018. "A comparison of stated preference methods for the valuation of improvement in road safety," Economic Analysis and Policy, Elsevier, vol. 59(C), pages 138-149.
    14. Benoit Chèze & Charles Collet & Anthony Paris, 2021. "Estimating discrete choice experiments : theoretical fundamentals," CIRED Working Papers hal-03262187, HAL.
    15. Helen Scarborough & Jeff Bennett, 2012. "Cost–Benefit Analysis and Distributional Preferences," Books, Edward Elgar Publishing, number 14376.
    16. Jürgen Meyerhoff & Morten Mørkbak & Søren Olsen, 2014. "A Meta-study Investigating the Sources of Protest Behaviour in Stated Preference Surveys," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(1), pages 35-57, May.
    17. Pierre-Alexandre Mahieu & Henrik Andersson & Olivier Beaumais & Romain Crastes & François-Charles Wolff, 2014. "Is Choice Experiment Becoming more Popular than Contingent Valuation? A Systematic Review in Agriculture, Environment and Health," Working Papers 2014.12, FAERE - French Association of Environmental and Resource Economists.
    18. Schlapfer, Felix, 2006. "Survey protocol and income effects in the contingent valuation of public goods: A meta-analysis," Ecological Economics, Elsevier, vol. 57(3), pages 415-429, May.
    19. Brey, Raul & Riera, Pere & Mogas, Joan, 2007. "Estimation of forest values using choice modeling: An application to Spanish forests," Ecological Economics, Elsevier, vol. 64(2), pages 305-312, December.
    20. Elsa Varela & Zein Kallas, 2022. "Societal preferences for the conservation of traditional pig breeds and their agroecosystems: Addressing preference heterogeneity and protest responses through deterministic allocation and scale‐exten," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(3), pages 761-788, September.

    More about this item

    Keywords

    Choice experiment; Forest resources; Forest fires; Institutional context;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:resene:v:34:y:2012:i:3:p:381-395. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505569 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.