Income distribution and willingness to pay for ecosystem services
Research output: Contributions to collected editions/works › Article in conference proceedings › Research › peer-review
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13th Annual BIOECON Conference “Resource Economics, Biodiversity Conservation and Development: 11-13 September 2011, programme and papers. Bioecon, 2011.
Research output: Contributions to collected editions/works › Article in conference proceedings › Research › peer-review
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TY - CHAP
T1 - Income distribution and willingness to pay for ecosystem services
AU - Baumgärtner, Stefan
AU - Drupp, Moritz
AU - Munz, Jan
AU - Meya, Jasper
AU - Quaas, Martin F.
N1 - Conference code: 13
PY - 2011
Y1 - 2011
N2 - We study how global income distribution, and income inequality in particular,affects the average willingness to pay (WTP) for ecosystem services. We use amodel (extending Ebert 2003) where individual households have identical preferences over consumption goods and ecosystem services, which are represented by a constantelasticity-of-substitution utility function, and income is log-normally distributed over individuals with given mean and standard deviation. We show that (i) average WTP for ecosystem services increases with mean income if ecosystem services and consumption goods are substitutes or weak complements, and (ii) average WTP for ecosystem services decreases (increases) with income inequality if ecosystem services and consumptiongoods are substitutes (complements). We illustrate our results with empirical dataon the global income distribution (from World Bank 2011) and on the income elasticity of WTP for ecosystem services (from the meta-study of Jacobsen and Hanley 2009).
AB - We study how global income distribution, and income inequality in particular,affects the average willingness to pay (WTP) for ecosystem services. We use amodel (extending Ebert 2003) where individual households have identical preferences over consumption goods and ecosystem services, which are represented by a constantelasticity-of-substitution utility function, and income is log-normally distributed over individuals with given mean and standard deviation. We show that (i) average WTP for ecosystem services increases with mean income if ecosystem services and consumption goods are substitutes or weak complements, and (ii) average WTP for ecosystem services decreases (increases) with income inequality if ecosystem services and consumptiongoods are substitutes (complements). We illustrate our results with empirical dataon the global income distribution (from World Bank 2011) and on the income elasticity of WTP for ecosystem services (from the meta-study of Jacobsen and Hanley 2009).
KW - Sustainability sciences, Management & Economics
KW - ecosystem services
KW - income distribution
KW - inequality
KW - willingness to pay
KW - contingent valuation
UR - http://www.bioecon-network.org/pages/13th_2011/Baumgaertner.pdf
UR - http://www.bioecon-network.org/pages/13th_2011/papers13.html
M3 - Article in conference proceedings
BT - 13th Annual BIOECON Conference “Resource Economics, Biodiversity Conservation and Development
PB - Bioecon
T2 - 13th Annual BIOdiversity and Economics for Conservation Conference - BIOECON 2013
Y2 - 11 September 2011 through 13 September 2011
ER -