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Sad or Happy? The Effects of Emotions on Stated Preferences for Environmental Goods

Author

Listed:
  • Nick Hanley

    (University of St Andrews)

  • Christopher Boyce

    (University of Stirling)

  • Mikołaj Czajkowski

    (University of Warsaw)

  • Steve Tucker

    (University of Waikato)

  • Charles Noussair

    (University of Arizona)

  • Michael Townsend

    (National Institute for Water and Atmosphere Ltd)

Abstract

A substantial literature in behavioural science and psychology shows that emotions affect human choices and values. This paper investigates whether such emotional impacts are also present in stated choice experiments for environmental goods. If this were so, it would introduce an additional element of context dependence to the welfare measures derived from such methods, and would be at odds with the rational choice model underlying welfare economics. A laboratory experiment using three different emotion treatments was combined with a stated preference choice experiment concerned with changes in coastal water quality and fish populations in New Zealand. No statistically significant effects of changes in emotional state on estimated preference parameters, willingness to pay or the randomness of choices were found. The paper concludes by questioning, why such a contrast exists with empirical findings in behavioural science.

Suggested Citation

  • Nick Hanley & Christopher Boyce & Mikołaj Czajkowski & Steve Tucker & Charles Noussair & Michael Townsend, 2017. "Sad or Happy? The Effects of Emotions on Stated Preferences for Environmental Goods," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(4), pages 821-846, December.
    • Handle: RePEc:kap:enreec:v:68:y:2017:i:4:d:10.1007_s10640-016-0048-9
    DOI: 10.1007/s10640-016-0048-9
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    Cited by:

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    2. Vondolia, Godwin K. & Hynes, Stephen & Armstrong, Claire W. & Chen, Wenting, 2021. "Subjective well-being and stated preferences: Explorations from a choice experiment in Norway," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 91(C).
    3. Michela Faccioli & Mikołaj Czajkowski & Klaus Glenk & Julia Martin-Ortega, 2018. "Environmental attitudes and place identity as simultaneous determinants of preferences for environmental goods," Working Papers 2018-08, Faculty of Economic Sciences, University of Warsaw.
    4. Shaohua He & Lei Liu & Qi Liu & Shaoling Fu, 2024. "Creating social value through operational supply chain transparency," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 2333-2351, May.
    5. Diaz, Lina & Houser, Daniel & Ifcher, John & Zarghamee, Homa, 2023. "Estimating social preferences using stated satisfaction: Novel support for inequity aversion," European Economic Review, Elsevier, vol. 155(C).
    6. Meles, Tensay Hadush & Ryan, Lisa & Mukherjee, Sanghamitra C., 2022. "Heterogeneity in preferences for renewable home heating systems among Irish households," Applied Energy, Elsevier, vol. 307(C).
    7. Ifcher, John & Zarghamee, Homa & Goff, Sandra H., 2021. "Happiness in the Lab: What Can Be Learned about Subjective Well-Being from Experiments?," GLO Discussion Paper Series 943, Global Labor Organization (GLO).
    8. Mol, Jantsje M. & Botzen, W.J. Wouter & Blasch, Julia E., 2020. "Behavioral motivations for self-insurance under different disaster risk insurance schemes," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 967-991.
    9. Sandra Notaro & Maria De Salvo, 2021. "Does Music Affect Visitors’ Choices for the Management and Conservation of Ecosystem Services?," Sustainability, MDPI, vol. 13(18), pages 1-13, September.

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    More about this item

    Keywords

    Choice experiments; Behavioral economics; Environmental valuation; Emotions; Cost-benefit analysis;
    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
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D87 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Neuroeconomics

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