Wildfires in Poland: the impact of risk preferences and loss aversion on environmental choices

Anna Bartczak, Susan Chilton and Jürgen Meyerhoff
Additional contact information
Susan Chilton: Newcastle University Business School

No 2014-08, Working Papers from Faculty of Economic Sciences, University of Warsaw

Abstract: This paper examines how risk preferences and loss aversion affect choices over a risky environmental good, wildfire prevention in Poland. We collect data in a stated preference survey that allows us to calculate both risk aversion and loss aversion parameters from individual respondents in both the financial and environmental domains. In doing so, we are able to confirm that this behaviour is consistent with prospect theory and holds for the majority of respondents. Additionally, we find little evidence of domain specificity of risk: responses to the financial risk questions were good predictors of responses to the environmental risk questions.

Keywords: risk preferences over financial and environmental domains; forest fires; loss aversion; probability weighting; prospect theory (search for similar items in EconPapers)
JEL-codes: D03 D81 Q51 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2014
New Economics Papers: this item is included in nep-agr, nep-cbe, nep-env and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP125.pdf First version, 2014 (application/pdf)

Related works:
Journal Article: Wildfires in Poland: The impact of risk preferences and loss aversion on environmental choices (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:war:wpaper:2014-08

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