The Impact of Individual Risk Preferences on Valuing Preservation of Threatened Species: an Application to Lynx Populations in Poland

Anna Bartczak, Susan Chilton () and Jürgen Meyerhoff
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Susan Chilton: Newcastle University Business School

No 2013-09, Working Papers from Faculty of Economic Sciences, University of Warsaw

Abstract: A recent innovation in environmental valuation surveys has been to acknowledge the inherent uncertainties surrounding the provision of environmental goods and services and to incorporate it into non-market survey designs. So far, little is known about how people assimilate and respond to such uncertainty, particularly in terms of how it affects their stated valuations. In this paper we focus on the impact of risk preferences on people’s investments in environment. Individual risk preferences are elicited through a standard, incentivized multiple price list mechanism and used as a independent variable in the analysis of a choice experiment valuing the preservation of two threatened lynx populations in Poland. We find that risk-seeking respondents were more likely to choose the status quo option, which was the riskiest option in terms of the survival of the two distinct lynx populations. Risk seekers revealed also a significantly lower willingness to pay for lynx preservations.

Keywords: choice experiment; environmental good; lottery experiment; lynx preservation; risk preferences; status quo effect (search for similar items in EconPapers)
JEL-codes: Q23 Q51 Q56 Q57 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2013
New Economics Papers: this item is included in nep-agr, nep-cbe, nep-dcm, nep-env and nep-upt
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http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP94.pdf First version, 2013 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:war:wpaper:2013-09

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