Incorporating outcome uncertainty and prior outcome beliefs in stated preferences
Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
Stated preference studies tell respondents that policies create environmental changes with varying levels of uncertainty. However, respondents may include their own a priori assessments of uncertainty when making choices among policy options. Using a choice experiment eliciting respondents’ preferences for conservation policies under climate change, we find that higher outcome uncertainty reduces utility. When accounting for endogeneity, we find that prior beliefs play a significant role in this cost of uncertainty. Thus, merely stating “objective” levels of outcome uncertainty will not necessarily solve the problem of people valuing something differently from originally intended: respondents’ prior beliefs must be accounted for.
Originalsprog | Engelsk |
---|---|
Tidsskrift | Land Economics |
Vol/bind | 91 |
Udgave nummer | 2 |
Sider (fra-til) | 296-316 |
Antal sider | 21 |
ISSN | 0023-7639 |
DOI | |
Status | Udgivet - 2015 |
Links
- http://le.uwpress.org/content/91/2/296.short
Forlagets udgivne version
ID: 153108340