Is the value of environmental goods sensitive to the public funding scheme? Evidence from a marine restoration programme in the Black Sea

Kyriaki Remoundou (), Fikret Adaman (), Phoebe Koundouri () and Paulo Nunes ()

Empirical Economics, 2014, vol. 47, issue 4, 1173-1192

Abstract: In this paper, we conduct choice experiments in Turkey and Ukraine on the valuation of a marine restoration programme in the Black Sea, to examine whether the value of environmental goods is sensitive to the source of public financing. We contribute to the debate on the optimal composition of public expenditure, an issue that can be controversial in times of financial crises. We discriminate between two funding regimes through the reallocation of public spending. The first proposes financing the marine restoration programme by reducing public expenditure for investments in renewable energy, and the second by reducing public expenditure for civil servants’ training. The results reveal that the marginal value of public money depends on the funding source. Furthermore, attribute values are sensitive to the trade-off implied by the funding scheme. The magnitude of the results differs in the two countries considered, because of their heterogeneity in political and cultural dimensions. Copyright Springer-Verlag Berlin Heidelberg 2014

Keywords: Black Sea; Marine resources; Public goods; Stated choice experiment; Tax revenues reallocation; H41; H50; Q51; Q57 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (6)

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DOI: 10.1007/s00181-014-0806-x

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