Pessimism or optimism: a justification to voluntary contributions toward environmental quality

Johanna Etner and Meglena Jeleva ()

Cahiers de la Maison des Sciences Economiques from Université Panthéon-Sorbonne (Paris 1)

Abstract: This arrticle analyzes the determinants of voluntary contribution to environmental quality by introducing the perception of the environmental risk. The environmental quality is assumed uncertain and influenced by current quality and individuals' contributions. We consider individuals who are aware both of the impact of their voluntary contributions and of the quality of the current environment on the future quality of environment. Agents' preferences are represented by the RDEU model. We show that the contribution level results from two effects: a wealth effect (environmental or financial) and a risk one. It appears that wealth effects (unless for extreme wealth levels) is not sufficient to explain the implication of agents in the improvement of the environmental quality and that risk and attitude towards risk should be taken into account

Keywords: Risk perception; pessimism; optimism; environmental quality (search for similar items in EconPapers)
JEL-codes: D69 D89 H23 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2004-10
New Economics Papers: this item is included in nep-env and nep-res
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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ftp://mse.univ-paris1.fr/pub/mse/cahiers2004/V04099.pdf (application/pdf)

Related works:
Journal Article: PESSIMISM OR OPTIMISM: A JUSTIFICATION TO VOLUNTARY CONTRIBUTIONS TOWARD ENVIRONMENTAL QUALITY* (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:mse:wpsorb:v04099

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