Title: Do past states and causes of soil degradation affect interest and stated willingness-to-pay values? Evidence from a quasi-experimental survey

Authors: Antoine Beretti; Gilles Grolleau

Addresses: Montpellier SupAgro, UMR1135 LAMETA, 2, place Viala, Bâtiment 26, 34060 Montpellier, France ' Montpellier SupAgro, UMR1135 LAMETA, 2, place Viala, Bâtiment 26, 34060 Montpellier, France; Burgundy School of Business, LESSAC, Dijon, France

Abstract: Departing from standard applications of utility theory where only outcomes matter, we investigate whether past states of an environmental medium (lost state versus net gain) and alternative causes (human cause versus natural cause) of an environmental problem affect respondents' interest in and willingness-to-pay to improve it. We use a quasi-experimental survey over a random sample of citizens in a small region of France. Respondents stated their perceived value of solving an environmental problem related to soil degradation. We find that respondents' interest is somewhat affected by the combination of past states and alternative causes whereas results on stated willingness-to-pay are inconclusive. Our results suggest that loss aversion can be mitigated depending on the presence and nature of the cause of the environmental problem in question.

Keywords: behavioural economics; field experiment; loss aversion; soil degradation; willingness-to-pay; reference dependence; past states; net gain; human causes; natural causes; environmental problems; France; perceived value.

DOI: 10.1504/IJSD.2016.073670

International Journal of Sustainable Development, 2016 Vol.19 No.1, pp.54 - 75

Accepted: 06 May 2015
Published online: 15 Dec 2015 *

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