The effects of current income and expected change in future income on stated preferences for environmental improvements
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The effects of current income and expected change in future income on stated preferences for environmental improvements. / Jacobsen, Jette Bredahl; Lundhede, Thomas; Thorsen, Bo Jellesmark.
In: Journal of Forest Economics, Vol. 19, No. 2, 2013, p. 206-219.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - The effects of current income and expected change in future income on stated preferences for environmental improvements
AU - Jacobsen, Jette Bredahl
AU - Lundhede, Thomas
AU - Thorsen, Bo Jellesmark
PY - 2013
Y1 - 2013
N2 - We formulate and test the hypothesis that expectations regarding changes in future income influences the WTP for environmental goods. For valuation of environmental goods in forests and other habitats in Denmark, we find that both current income and expected changes in future income are significant determinants for preferences. The effect of income on WTP seems to be caused by changes in preferences for environmental attributes rather than by marginal utility of income. The results suggest that to evaluate the distributional impacts of environmental improvements, researchers need a better measure of expected future consumption options than current income.
AB - We formulate and test the hypothesis that expectations regarding changes in future income influences the WTP for environmental goods. For valuation of environmental goods in forests and other habitats in Denmark, we find that both current income and expected changes in future income are significant determinants for preferences. The effect of income on WTP seems to be caused by changes in preferences for environmental attributes rather than by marginal utility of income. The results suggest that to evaluate the distributional impacts of environmental improvements, researchers need a better measure of expected future consumption options than current income.
U2 - 10.1016/j.jfe.2013.02.002
DO - 10.1016/j.jfe.2013.02.002
M3 - Journal article
VL - 19
SP - 206
EP - 219
JO - Journal of Forest Economics
JF - Journal of Forest Economics
SN - 1104-6899
IS - 2
ER -
ID: 99135742