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Does institutional context affect preference formation? Evidence from a stated preference valuation study

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

Abstract

In this paper we employ a choice experiment to test the effect of the institution responsible for the management of an environmental good, on stated preferences. Specifically, we examine whether respondents’ valuation of a forest restoration program in Greece is different under (a) European Commission and (b) National State management. Following a split sample approach and accounting for preference heterogeneity, we find that the institutional context is neutral to preference formation for the environmental good in question although there are significant differences in the trust levels reported for the two institutions considered.

Suggested Citation

  • 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.
    • Handle: RePEc:pra:mprapa:122495
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    More about this item

    Keywords

    choice experiment; preference formation; institutional context; forest fires;
    All these keywords.

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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