Making or buying environmental public goods: do consumers care?

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.


Issue Date:
2012
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/207991
Total Pages:
16
Series Statement:
12-04




 Record created 2017-04-01, last modified 2017-08-28

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