Scandinavian Working Papers in Economics
Umeå Economic Studies,
Umeå University, Department of Economics
No 676: Demand for Environmental Quality: An Empirical Analysis of Consumer Behavior in Sweden
Tarek Ghalwash ()
Additional contact information
Tarek Ghalwash: Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden
Abstract: In this paper we estimate the income elasticity of demand for recreational services and
other traditional groups of goods in Sweden and test for potential changes in such
estimates over the twentieth century. Due to the difficulty of directly observing the
demand for recreational services, we employ an indirect methodology by using the
demand for some outdoor goods as a proxy for the demand for recreational services. In
line with most prior research, our results confirm the expectation that recreational
services, as a public good, is a luxury good in Sweden. Our results also show that the
income elasticities for traditional goods are stable over time, indicating that consumer
preferences for expenditure on these specific commodities do not change over time.
Keywords: Household demand; environmental services; income elasticities; Engel curves
24 pages, May 5, 2006
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