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Disentangling the effects of policy and payment consequentiality and risk attitudes on stated preferences

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  • Ewa Zawojska

    (Faculty of Economic Sciences, University of Warsaw)

  • Anna Bartczak

    (Faculty of Economic Sciences, University of Warsaw)

  • Mikołaj Czajkowski

    (Faculty of Economic Sciences, University of Warsaw)

Abstract

Incentivising respondents to truthfully reveal their preferences in stated preference surveys requires that they believe their survey responses can influence decisions related to the outcome in question (policy consequentiality) and that they will have to bear their share of coercive cost if the outcome is implemented (payment consequentiality). We investigate the effects of these two aspects of consequentiality on stated preferences in a field survey concerning renewable energy development in Poland. We find that beliefs in policy and payment consequentiality strengthen respondents’ interest in having the project implemented, but policy consequentiality decreases, while payment consequentiality increases their sensitivity to the project cost, thus increasing or decreasing their willingness to pay, respectively. We conclude that the two components of consequentiality should be addressed separately in stated preference studies. Additionally, we inquire the theoretically speculated links between respondents’ perceptions about policy and payment consequentiality and their risk attitudes, finding no significant relationship.

Suggested Citation

  • Ewa Zawojska & Anna Bartczak & Mikołaj Czajkowski, 2018. "Disentangling the effects of policy and payment consequentiality and risk attitudes on stated preferences," Working Papers 2018-01, Faculty of Economic Sciences, University of Warsaw.
    • Handle: RePEc:war:wpaper:2018-01
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    More about this item

    Keywords

    stated preferences; discrete choice experiment; policy consequentiality; payment consequentiality; risk attitudes; renewable energy;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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