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Tenaw Gedefaw Abate

Payment and Policy Consequentiality in Dichotomous Choice Contingent Valuation: Experimental Design Effects on Self-Reported Perceptions

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  • Tobias Börger, Berlin School of Economics and Law, University of Stirling, Germany
  • Tenaw Gedefaw Abate
  • Margrethe Aanesen, Arctic University of Norway, Norway
  • Ewa Zawojska, University of Warsaw, Poland
Although the contingent valuation literature emphasizes the importance of controlling for respondents’ consequentiality perceptions, this literature has rarely accounted for the difference between payment and policy consequentiality. We examine the influence of a randomly assigned tax amount on consequentiality self-reports and their potential endogeneity using data from a single dichotomous choice survey about reducing marine plastic pollution in Norway. Results show that consequentiality perceptions are a function of the tax amount, with payment consequentiality decreasing and policy consequentiality increasing with higher tax amounts. We discuss the challenge of finding valid instruments to address the potential endogeneity of consequentiality perceptions
Original languageEnglish
JournalLand Economics
Pages (from-to)407–424
Number of pages18
Publication statusPublished - May 2021

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