Overheating Willingness to Pay: Who Gets Warm Glow and What It Means for Valuation. (August 2014)

• Record Type: Journal Article
• Authors: Interis, Matthew G.; Haab, Timothy C.
• Is Part Of: Agricultural and resource economics review. Volume 43:Number 2(2014)
• Page Start: 266
• Page End: 278
• Publication Date: 2014-08
• Subjects: contingent valuation, -- warm glow, -- willingness to pay; Sustainable agriculture -- Periodicals; Sustainable agriculture -- United States -- Periodicals; Natural resources -- Periodicals; Agriculture -- Economic aspects -- Periodicals; Rural development -- Periodicals; 338.10974
• DOI: 10.1017/S1068280500004317
• Languages: English
• ISSNs: 1068-2805

Abstract

Abstract : In traditional contingent valuation, the researcher seeks the amount a respondent is willing, ceteris paribus, to pay to obtain something. But if a respondent receives a "warm glow" from a yes response, ceteris is not paribus. In estimating willingness to pay (WTP) to reduce environmental impacts from consumption of transportation fuel, we find that respondents who were relatively less environmentally focused in the past receive greater warm-glow benefits from a "yes" response and have greater "warm" WTP (WTP that includes warm-glow benefits). Yet respondents who were relatively more environmentally focused in the past have greater "cold" WTP (WTP excluding warm-glow benefits).