Warm Glow and Embedding in Contingent Valuation

30 Pages Posted: 14 Oct 2001

See all articles by Paulo A. L. D. Nunes

Paulo A. L. D. Nunes

University of Padova - Dipartimento Territorio e Sistemi Agro Forestali (TeSAF)

Erik Schokkaert

Catholic University of Leuven (KUL)

Date Written: September 2001

Abstract

This paper reports the results from a contingent valuation study designed to investigate the influence of warm glow in willingness-to-pay responses. Interindividual differences in warm glow motivation are measured through a factor analysis, performed on a list of attitudinal items. The reported willingness to pay measures fail to pass the scope test. Both socioeconomic variables and motivational factor scores are significant in the explanation of the individual WTP measures. We compute dry WTP measures by taking out the effect of the warm glow motivation. These dry measures satisfy both the scope test and Hausman's adding-up property and could therefore be interpreted as reflecting true economic preferences.

Keywords: Contingent valuation, recreation, wildlife, willingness to pay, warm glow

JEL Classification: C12, C13, C14, Q26

Suggested Citation

Dias Nunes, Paulo Augusto and Schokkaert, Erik, Warm Glow and Embedding in Contingent Valuation (September 2001). Available at SSRN: https://ssrn.com/abstract=286833 or http://dx.doi.org/10.2139/ssrn.286833

Paulo Augusto Dias Nunes (Contact Author)

University of Padova - Dipartimento Territorio e Sistemi Agro Forestali (TeSAF) ( email )

Legnaro, Padova 35020
Italy

Erik Schokkaert

Catholic University of Leuven (KUL) ( email )

Oude Markt 13
Leuven, Vlaams-Brabant 3000
Belgium

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