Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 669: Difference in Preferences or in Preference Orderings? Comparing Choices of Environmental Bureaucrats, Recreational Anglers, and the Public

Håkan Eggert (), Mitesh Kataria () and Elina Lampi ()
Additional contact information
Håkan Eggert: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O. Box 640, SE 40530 GÖTEBORG, Sweden
Mitesh Kataria: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O. Box 640, SE 40530 GÖTEBORG, Sweden
Elina Lampi: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O. Box 640, SE 40530 GÖTEBORG, Sweden

Abstract: Do Environmental Protection Agency (EPA) bureaucrats represent the general public or are they more in line with an interest group? We study preferences for environmental policy using a choice experiment (CE) on three populations; the general public, Swedish EPA bureaucrats, and recreational anglers. We also test for existence of multiple preference orderings, i.e., whether responses differ depending on the decision role assigned. Half of the respondents were asked to choose the alternatives that best corresponded with their opinion, and the other half was asked to take the role of a policymaker and make recommendations for environmental policy. The SEPA bureaucrats have the highest marginal willingness to pay (MWTP) to improve environmental quality. These differences are robust and not due to differences in socio-economic characteristics across the populations. We found little evidence of multiple preference orderings, but in one case the difference in MWTP between the two roles was substantial.

Keywords: choice experiment; distribution; environmental valuation; Homo Economicus; Homo Politicus; multiple preference orderings; willingness to pay

JEL-codes: D61; H41; Q51; Q58

32 pages, August 2016

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