Making or Buying Environmental Public Goods: Do Consumers Care?

Douadia Bougherara, Sandrine Costa and Mario Teisl ()

Land Economics, 2013, vol. 89, issue 4

Abstract: Firms may voluntarily abate pollution using one of two options: internalizing their own external effects and incurring abatement costs (“making”), or delegating environmental protection by purchasing offsets (“buying”). We aim to elicit consumers’ willingness to pay for producers’ use of the “making” option as compared to the “buying” option, controlling for spatial effects (joint local public goods), and level of greenhouse gas emissions. Using a stated-choice survey of 722 respondents, we find consumers are more willing to pay for a “making” policy. Consumers do significantly care for the producers’ use of offsets when the level of local externalities is controlled for.

JEL-codes: Q54 Q58 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Making or buying environmental public goods: do consumers care? (2012)
Working Paper: Making or buying environmental public goods: do consumers care? (2012)
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