Income inequality and willingness to pay for environmental public goods

Journal of Environmental Economics and Management

Volumn 85, Issue , 2017, Pages 35-61

  Baumgärtner, Stefan ^a,b   Drupp, Moritz A ^c,d,e   Meya, Jasper N ^f,g   Munz, Jan M ^e   Quaas, Martin F ^c  

^a UNIVERSITY OF FREIBURG   (Germany)

^b LEUPHANA UNIVERSITY OF LÜNEBURG   (Germany)

^c UNIVERSITY OF KIEL   (Germany)

^d LONDON SCHOOL OF ECONOMICS   (United Kingdom)

^e UNIVERSITY OF TÜBINGEN   (Germany)

^f UNIVERSITY OF OLDENBURG   (Germany)

^g HUMBOLDT UNIVERSITY   (Germany)

Author keywords

Benefit transfer; Environmental goods; Income distribution; Inequality; Public goods; Sustainability policy; Willingness to pay

Indexed keywords

SUSTAINABLE DEVELOPMENT;

BENEFIT TRANSFER; ENVIRONMENTAL GOODS; INCOME DISTRIBUTION; INEQUALITY; PUBLIC GOODS; SUSTAINABILITY POLICY; WILLINGNESS TO PAY;

DISTRIBUTION OF GOODS;

COST-BENEFIT ANALYSIS; EQUITY; INCOME DISTRIBUTION; MANUFACTURING; PUBLIC GOODS; SUSTAINABILITY; WILLINGNESS TO PAY;

SWEDEN;

EID: 85018749011     PISSN: 00950696     EISSN: 10960449     Source Type: Journal    
DOI: 10.1016/j.jeem.2017.04.005     Document Type: Article

References (53)

1. Aaron, H., McGuire, M., Public goods and income distribution. Econometrica 38 (1970), 907–919.
2. Bandourian, R., McDonald, J.B., Turley, R.S., A comparison of parametric models of income distribution across countries and over time. Estadistica 55 (2003), 135–152.
3. Barbier, E.B., Czajkowski, M., Hanley, N., 2017, Is the income elasticity of the willingness to pay for pollution control constant? Environ. Resour. Econ., in press, http://dx.doi.org/10.1007/s10640-016-0040-4.
4. Barton, D.N., The transferability of benefit transfer: contingent valuation of water quality improvements in Costa Rica. Ecol. Econ. 42:1–2 (2002), 147–164.
5. Bateman, I.J., Mace, G.M., Fezzi, C., Atkinson, G., Turner, R.K., Economic analysis for ecosystem service assessments. Environ. Resour. Econ. 48:2 (2011), 177–218.
6. Baumgärtner, S., Quaas, M.F., What is sustainability economics?. Ecol. Econ. 69:3 (2010), 445–450.
7. Baumgärtner, S., Drupp, M.A., Quaas, M.F., 2017. Subsistence, substitutability and sustainability in consumption, Environmental and Resource Economics, 67 (1), 2017, 47–66. http://dx.doi.org/10.1007/s10640-015-9976-z.
8. Broberg, T., Brännlund, R., On the value of large predators in Sweden: a regional stratified contingent valuation analysis. J. Environ. Manag. 88 (2008), 1066–1077.
9. Broberg, T., Income treatment effects in contingent valuation: the case of the Swedish predator policy. Environ. Resour. Econ. 46:1 (2010), 1–17.
10. Broberg, T., 2014. Relative income and the WTP for public goods–A case study of forest conservation in Sweden, CERE Working Paper 2014: 6.
11. Bronstein, I.N., Semendjajew, K.A., Taschenbuch der Mathematik. 23rd ed., 1987, Verlag Harri Deutsch, Thun.
12. Buchanan, J.M., Fiscal institutions and efficiency in collective outlay. Am. Econ. Rev. 54:3 (1964), 227–235.
13. Buckley, E., Croson, R., Income and wealth heterogeneity in the voluntary provision of linear public goods. J. Public Econ. 90:4–5 (2006), 935–955.
14. Chiabai, A., Travisi, C., Markandya, A., Ding, H., Nunes, P., Economic assessment of forest ecosystem services losses: cost of policy inaction. Environ. Resour. Econ. 50:3 (2011), 405–445.
15. Cowell, F., Measuring Inequality. 2009, Oxford University Press, Oxford.
16. Czajkowski, M., Ščasný, M., Study on benefit transfer in an international setting. How to improve welfare estimates in the case of the countries' income heterogeneity?. Ecol. Econ. 69:12 (2010), 2409–2416.
17. Dalton, H., The measurement of the inequality of incomes. Econ. J. 30:119 (1920), 348–361.
18. Dorling, Newman, D.M., Barford, A., Atlas der wirklichen Welt: so haben Sie die Erde noch nie gesehen. 2010, Primus Verlag, Darmstadt.
19. Drupp, M.A., Freeman, M.C., Groom, B., Nesje, F., 2015. Discounting disentangled: An expert survey on the determinants of the long-term social discount rate, Grantham Research Institute on Climate Change and the Environment Working Paper No. 172.
20. Drupp, M.A., 2017. Limits to substitution between ecosystem services and manufactured goods and implications for social discounting, Environ. Resour. Econ., in press, http://dx.doi.org/10.1007/s10640-016-0068-5.
21. Ebert, U., Environmental goods and the distribution of income. Environ. Resour. Econ. 25:4 (2003), 435–459.
22. Flores, N.E., Carson, R.T., The relationship between the income elasticities of demand and willingness to pay. J. Environ. Econ. Manag. 33:3 (1997), 287–295.
23. Giesen, Zimmermann, K.A., Suedekum, J., The size distribution across all cities – double Pareto lognormal strikes. J. Urban Econ. 68:2 (2010), 129–137.
24. Hökby, S., Söderqvist, T., Elasticities of demand and willingness to pay for environmental services in Sweden. Environ. Resour. Econ. 26:3 (2003), 361–383.
25. Hammitt, J., Liu, J.-T., Liu, J.-L., Contingent valuation of a Taiwanese wetland. Environ. Dev. Econ. 6 (2001), 259–268.
26. Hanemann, W.M., Willingness to pay and willingness to accept: how much can they differ?. Am. Econ. Rev. 81 (1991), 635–647.
27. Hofmeyr, Burns, A.J., Visser, M., Income inequality, reciprocity and public good provision: an experimental analysis. South Afr. J. Econ. 75:3 (2007), 508–520.
28. Horowitz, J.K., McConnell, K.E., Willingness to accept, willingness to pay and the income effect. J. Econ. Behav. Organ. 51 (2003), 537–545.
29. Jacobsen, J., Hanley, N., Are there income effects on global willingness to pay for biodiversity conservation?. Environ. Resour. Econ. 43:2 (2009), 137–160.
30. Kaul, S., Boyle, K.J., Kuminoff, N.V., Parmeter, C.F., Pope, J.C., What can we learn from benefit transfer errors? Evidence from 20 years of research on convergent validity. J. Environ. Econ. Manag. 66:1 (2013), 90–104.
31. Khan, H., Willingness to pay and demand elasticities for two national parks empirical evidence from two surveys in Pakistan. Environ. Dev. Sustain. 11:2 (2009), 293–305.
32. Kovenock, D., Sadka, E., Progression under the benefit approach to the theory of taxation. Econ. Lett. 8 (1981), 95–99.
33. Kriström, B., Riera, P., Is the income elasticity of environmental improvements less than one?. Environ. Resour. Econ. 7 (1996), 45–55.
34. Lindhjem, H., Tuan, T.H., Valuation of species and nature conservation in Asia and Oceania: a meta-analysis. Environ. Econ. Policy Stud. 14:1 (2012), 1–22.
35. Liu, S., Stern, D.I., 2008. A meta-analysis of contingent valuation studies in coastal and bear-shore marine ecosystems, CSIRO Working Paper Series 2008-15.
36. Loomis, J.B., The evolution of a more rigorous approach to benefit transfer: benefit function transfer. Water Resour. Res. 28 (1992), 701–705.
37. Neary, J.P., Roberts, K.W.S., The theory of household behaviour under rationing. Eur. Econ. Rev. 13 (1980), 25–42.
38. Pek, C.-K. Tee, C.-H., Ng, P.-Y., 2010. A contingent valuation estimation of hill recreational and services values in Malaysia, MPRA Paper No. 23125.
39. Pigou, A.C., Wealth and Welfare. 1912, Macmillan, London.
40. Pinkovskiy, M., Sala-i-Martin, X., 2009. Parametric estimations of the world distribution of income, NBER Working Paper No. 15433.
41. Rapoport, A., Suleiman, R., Incremental contribution in step-level public goods games with asymmetric players. Organ. Behav. Human. Decis. Process. 55:2 (1993), 171–194.
42. Ready, R.C., Navrud, S., International benefit transfer: methods and validity tests. Ecol. Econ. 60:2 (2006), 429–434.
43. Ready, R.C.J., Malzubris, J., Senkane, S., The relationship between environmental values and income in a transition economy: surface water quality in Latvia. Environ. Dev. Econ. 7:1 (2002), 147–156.
44. Requate, T., Lange, A., Pigouvian taxes in general equilibrium with a fixed tax redistribution rule. J. Public Econ. Theory 2:1 (2000), 25–42.
45. Richardson, Kroeger, L.J. Loomis T., Casey, F., The role of benefit transfer in ecosystem service valuation. Ecol. Econ. 115 (2015), 51–58.
46. Rosenberger, R.S., Loomis, J.B., 2003. Benefit transfer. In: Champ, P.A., Boyle, K.J., Brown, T.C., (eds). A Primer on Non-Market Valuation, Dordrecht: Kluwer, pp. 445–482.
47. Söderqvist, T., Scharin, H., 2000. The regional willingness to pay for a reduced eutrophication in the Stockholm archipelago, Beijer Discussion Paper No. 128.
48. Scandizzo, P.L., Ventura, M., 2008. Contingent valuation of natural resources: a case study for Sicily, ISAE Working Paper No. 91.
49. Schläpfer, F., Survey protocol and income effects in the contingent valuation of public goods: a meta-analysis. Ecol. Econ. 57:3 (2006), 415–429.
50. Schläpfer, F., Contingent valuation: a new perspective. Ecol. Econ. 64:4 (2008), 729–740.
51. Smith, V.K., JEEM and non-market valuation 1974–1998. J. Environ. Econ. Manag. 39:3 (2000), 351–374.
52. Uzawa, H., Production functions with constant elasticity of substitution. Rev. Econ. Stud. 29 (1962), 291–299.
53. Wang, H., Shi, Y., Kim, Y., Kamata, T., Valuing water quality improvement in China. A case study of Lake Puzhehei in Yunnan Province. Ecol. Econ. 94 (2013), 56–65.