Browsing by Subject "Willingness to pay"

Sort by: Order: Results:

Now showing items 1-2 of 2
  • Togno, Francesca (Helsingin yliopisto, 2020)
    This thesis attempts to examine how much a representative consumer per each country is willing to pay to avoid global warming by analysing their welfare gains from having a smoother consumption path. Temperature variations affect economic activity, and consumption is subject to shocks related to global warming. I start by reviewing the economic literature that studied the relationship between temperatures and economic activity. I highlight which are the main effects on the economy that are correlated to rising temperatures and I review the methods that are usually employed by economists to assess environmental damages. I then take a sample of 163 countries and compute the welfare gains for each country for having a smoother consumption path, following the method used by Lucas (2003). To do this, I use country-level household consumption data and I set values for the risk aversion coefficient following the suggestions of the previous economic literature. I repeat the experiment with a smaller sample of 72 countries, this time using country-specific risk aversion coefficients retrieved from Gandelman and Hernández-Murillo (2015). In both cases, I obtain that most of the countries have welfare gains lying in the order of 10^-2 and 10^-3. Using annual temperature data, I test the Spearman correlation coefficient between welfare gains and average temperatures. Although the previous literature stressed the adverse effects of global warming on the economy, I find no significant correlation between these two variables. Countries that are more at risk do not display higher welfare gains than countries with a lower risk of imminent climate damages. To explain my results, I then consider determinants of risk aversion other than temperature and conclude that risk aversion, and consequently the value of welfare gains, can depend on several other factors.
  • Lundberg, Piia; Veríssimo, Diogo; Vainio, Annukka; Arponen, Anni (2020)
    Environmental non-governmental organizations (ENGOs) appeal to private donors for conservation fundraising, often employing single species flagships as their fundraising strategy. Previous studies suggest that donor preferences vary, and can be divided into segments. Just as preferences towards species can vary, preferences towards different flagship types may also differ. Thus, opportunities may exist to enhance the use of other flagship types such as flagship fleets, ecosystems or biodiversity in fundraising. Although previous studies have found that aesthetic appeal, locality or threat status can explain the decision to donate, it is unclear how these attributes influence choices between flagship types. We conducted a discrete choice experiment on donor preferences towards different flagship types in the United Kingdom (n = 380) and the United States (n = 374), and explored how flagship attributes and socio-demographic variables affect potential donors' choices. Latent class modeling revealed seven donor segments in both countries that varied in their preferences of flagship types and attributes, as well as in their price-sensitivity. Some segments were similar for both countries, but the US segments were more polarized regarding price-sensitivity. Most respondents favored biodiversity targets in their choices, and ecosystems were more popular than species-based flagships. To enhance their fundraising capacity, ENGOs should extend their donation targets beyond flagship species, and develop more targeted marketing strategies for different audiences. Our research also demonstrates the need for further research to examine respondents' characteristics, such as personal values or environmental concern, which would allow more precisely targeted marketing to specific donor segments, e.g. through social media channels.