Does institutional context affect preference formation? Evidence from a stated preference valuation study
Kyriaki Remoundou (),
Yiannis Kountouris () and
Phoebe Koundouri ()
No 1006, DEOS Working Papers from Athens University of Economics and Business
In this paper we employ a choice experiment to test the effect of the institution responsible for the management of an environmental good, on stated preferences. Specifically, we examine whether respondentsÃƒÂ¢Ã¯Â¿Â½Ã¯Â¿Â½ valuation of a forest restoration program in Greece is different under (a) European Commission and (b) National State management. Following a split sample approach and accounting for preference heterogeneity, we find that the institutional context is neutral to preference formation for the environmental good in question although there are significant differences in the trust levels reported for the two institutions considered.
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