Do causes of environmental problems affect hicksian equivalent surplus? Evidence from the field

Erwin Bulte, Aart de Zeeuw, Shelby Gerking and John List

Framed Field Experiments from The Field Experiments Website

Abstract: Measuring preferences via stated methods remains the only technique to obtain the total economic value of a non-marketed good or service. This study examines if alternative causes of an environmental problem affect individual statements of compensation demanded. Making use of a unique sample drawn from the Netherlands, we find that Hicksian equivalent surplus (ES) is not significantly affected by causes of environmental harm. While our finding that agents only care about outcomes, rather than causes, is consonant with standard applications of utility theory, it is at odds with some recent experimental findings measuring the effects of cause on Hicksian compensating surplus (CS).

Date: 2004
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Journal Article: Do causes of environmental problems affect Hicksian equivalent surplus? Evidence from the field (2004)
Working Paper: Do causes of environmental problems affect Hicksian equivalent surplus? Evidence from the field (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:feb:framed:00133

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