Heterogeneity and emotions in the valuation of non-use damages caused by oil spills

Carmelo J. León, Jorge E. Araña, William Hanemann, Pere Riera

Research output: Contribution to journalArticle

9 Citations (Scopus)

Abstract

Oil spills are capable of causing major environmental insults that raise the emotional loads of individuals across society. In this paper we consider the role of emotions in heterogeneous responses of individuals in the non-market valuation of an oil prevention program in Spain. Heterogeneity is modeled with a smoothly mixing regression (SMR) model that allows researchers to explain the probability that individuals belong to the latent segments of WTP. The results show that heterogeneity in WTP responses is explained by the specific emotional reactions of individuals (upset, sadness, indifference) rather than by their socioeconomic characteristics. Thus, the investigation of the emotional reactions of individuals can provide useful tools for the design of non-market valuation studies, providing more accurate predictions of the potential behavior of individuals in constructed markets for damage assessment.

Original languageEnglish (US)
Pages (from-to)129-139
Number of pages11
JournalEcological Economics
Volume97
DOIs
StatePublished - Jan 2014
Externally publishedYes

Fingerprint

valuation
oil spill
damage
market
oil
prediction
Emotion
Damage
Oil spill
damage assessment
society
programme
socioeconomics
Non-market valuation
Willingness-to-pay

Keywords

  • Contingent valuation
  • Emotions
  • Heterogeneity
  • Oil spills
  • Smoothly mixing regression

ASJC Scopus subject areas

  • Economics and Econometrics
  • Environmental Science(all)

Cite this

Heterogeneity and emotions in the valuation of non-use damages caused by oil spills. / León, Carmelo J.; Araña, Jorge E.; Hanemann, William; Riera, Pere.

In: Ecological Economics, Vol. 97, 01.2014, p. 129-139.

Research output: Contribution to journalArticle

León, Carmelo J. ; Araña, Jorge E. ; Hanemann, William ; Riera, Pere. / Heterogeneity and emotions in the valuation of non-use damages caused by oil spills. In: Ecological Economics. 2014 ; Vol. 97. pp. 129-139.
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