Making or buying environmental public goods: do consumers care?

Douadia Bougherara, Sandrine Costa and Mario Teisl ()

No 207991, Working Papers from Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2)

Abstract: Firms may voluntary abate pollution using one of two options: internalizing its own external effects and incuring abatement costs ("making") or delegating environmental protection by purchasing offsets ("buying"). We aim to elicit consumers' WTP for producers' use of the "making" option as compared to the "buying" option, controlling for spatial effects (joint local public goods) and level of GHG emissions. Using a stated choice survey with 722 respondents, we find consumers are more willing to pay for a "making" policy. Consumers do not significantly care for the producers' use of offsets when the level of local externalities is controlled for.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 16
Date: 2012
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Working Paper: Making or buying environmental public goods: do consumers care? (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:inrasl:207991

DOI: 10.22004/ag.econ.207991

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