Economics at your fingertips  

Stated Preferences for Conservation Policies Under Uncertainty: Insights on the Effect of Individuals’ Risk Attitudes in the Environmental Domain

Michela Faccioli (), Laure Kuhfuss () and Mikolaj Czajkowski ()
Additional contact information
Michela Faccioli: The James Hutton Institute

Environmental & Resource Economics, 2019, vol. 73, issue 2, No 10, 627-659

Abstract: Abstract The outcome of a conservation policy is often subject to uncertainty. In stated preference valuation, it is increasingly recognised that uncertainty affects preferences for the outcomes of environmental policies. However, there is also agreement that the effect of uncertainty and people’s attitudes towards risk need to be better understood. To shed more light on the impact of risk, we designed a discrete choice experiment to compare preferences for environmental outcomes under climate change across two split samples. Each sample was confronted with a scenario where results were presented as certain or uncertain, but were otherwise associated with the same expected values. We found significant differences between the certain and the uncertain treatment, with uncertain outcomes being associated with more extreme utility levels and willingness to pay, in absolute terms. This finding was confirmed irrespective of whether gains or losses were considered and despite sensitivity to uncertainty—specific to the socio-demographic profile. Our results suggest that individuals are not risk neutral in the presence of uncertainty around environmental outcomes. These findings are crucial to better understand stated preferences for conservation policies in risky contexts. Our results reinforce the idea that uncertainty should be explicitly incorporated in the design of stated preference studies to better inform policy.

Keywords: Stated preference valuation; Uncertainty; Risk attitude; Climate change; Conservation; D6; D81; Q20; Q51; Q54 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.springer. ... al/journal/10640/PS2

DOI: 10.1007/s10640-018-0276-2

Access Statistics for this article

Environmental & Resource Economics is currently edited by Ian J. Bateman

More articles in Environmental & Resource Economics from Springer, European Association of Environmental and Resource Economists Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

Page updated 2020-05-29
Handle: RePEc:kap:enreec:v:73:y:2019:i:2:d:10.1007_s10640-018-0276-2