Willingness-to-Pay for Climate Change Mitigation: Evidence from China
26 Pages Posted: 21 Sep 2015
Date Written: May 5, 2015
Abstract
This study draws upon a large national survey of Chinese public cognition and attitude towards climate change and analyze the determinants of consumers’ WTP for energy-efficient and environment-friendly products. 85 percent of respondents indicate that they are willing to pay at least 10 percent more than otherwise would be for these products. The econometric analysis indicate that income, education, age and gender, as well as public awareness and concerns about climate change are significant factors influencing WTP. Respondents who are more knowledgeable and more concerned about the adverse effect of climate change show higher WTP. In comparison, the income elasticity is small. The results are robust to different model specifications and estimation techniques.
Keywords: Willingness-to-pay; climate change; China; interval regression
JEL Classification: Q2, Q4
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