Risk of pollution and the cost of misinformation

Emmanuelle Lavaine ()
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Emmanuelle Lavaine: IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc

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Abstract: This paper estimates the change in averting behavior following the openings of residual waste plants in Mexico in the period 2000 to 2011. Following an environmental change, it first shows theoretically that the difference in willingness to pay between two different perception of a risk can be attributed to preventive behavior. Empirical results from the difference in difference model show households undertake bottled water expenses even if the environmental health risk is close to zero. Household level of revenue plays an important role in the demand for bottle water consumption. .

Date: 2015-09-10
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Published in 2nd French Association of Environmental Economists (FAERE) Annual Conference, Sep 2015, Toulouse, France

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02048645

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