Making or buying environmental public goods: do consumers care?

Douadia Bougherara, Sandrine Costa and Mario Teisl (e0071687@maine.edu)

No 12-04, Working Papers SMART from INRAE UMR SMART

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: offsets; willingness to pay; stated choice (search for similar items in EconPapers)
JEL-codes: Q53 Q54 Q58 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2012
New Economics Papers: this item is included in nep-ene and nep-env
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http://ageconsearch.umn.edu/bitstream/207991/2/WP%20SMART-LERECO%2012-04.pdf (application/pdf)

Related works:
Journal Article: Making or Buying Environmental Public Goods: Do Consumers Care? (2013)
Working Paper: Making or buying environmental public goods: do consumers care? (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:rae:wpaper:201204

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