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Disentangling the effects of policy and payment consequentiality and risk attitudes on stated preferences

Ewa Zawojska, Anna Bartczak () and Mikolaj Czajkowski ()

No 2018-01, Working Papers from Faculty of Economic Sciences, University of Warsaw

Abstract: Incentivising respondents to truthfully reveal their preferences in stated preference surveys requires that they believe their survey responses can influence decisions related to the outcome in question (policy consequentiality) and that they will have to bear their share of coercive cost if the outcome is implemented (payment consequentiality). We investigate the effects of these two aspects of consequentiality on stated preferences in a field survey concerning renewable energy development in Poland. We find that beliefs in policy and payment consequentiality strengthen respondents’ interest in having the project implemented, but policy consequentiality decreases, while payment consequentiality increases their sensitivity to the project cost, thus increasing or decreasing their willingness to pay, respectively. We conclude that the two components of consequentiality should be addressed separately in stated preference studies. Additionally, we inquire the theoretically speculated links between respondents’ perceptions about policy and payment consequentiality and their risk attitudes, finding no significant relationship.

Keywords: stated preferences; discrete choice experiment; policy consequentiality; payment consequentiality; risk attitudes; renewable energy (search for similar items in EconPapers)
JEL-codes: Q51 Q48 D12 D81 H41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dcm, nep-env and nep-exp
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:war:wpaper:2018-01

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