Hostname: page-component-78c5997874-mlc7c Total loading time: 0 Render date: 2024-11-10T11:00:34.259Z Has data issue: false hasContentIssue false
  • English
  • Français

Overheating Willingness to Pay: Who Gets Warm Glow and What It Means for Valuation

Published online by Cambridge University Press:  15 September 2016

Matthew G. Interis  and
Timothy C. Haab
Matthew G. Interis*
Affiliation:
Department of Agricultural Economics at Mississippi State University
Timothy C. Haab
Affiliation:
Department of Agricultural, Environmental, and Development Economics at Ohio State University
*
Correspondence: Department of Agricultural Economics, P.O. Box 5187, Mississippi State, MS 39762, Phone 662.325.4787, Email interis@agecon.msstate.edu.
Get access

Abstract

In traditional contingent valuation, the researcher seeks the amount a respondent is willing, ceteris paribus, to pay to obtain something. But if a respondent receives a “warm glow” from a yes response, ceteris is not paribus. In estimating willingness to pay (WTP) to reduce environmental impacts from consumption of transportation fuel, we find that respondents who were relatively less environmentally focused in the past receive greater warm-glow benefits from a “yes” response and have greater “warm” WTP (WTP that includes warm-glow benefits). Yet respondents who were relatively more environmentally focused in the past have greater “cold” WTP (WTP excluding warm-glow benefits).

Keywords

contingent valuationwarm glowwillingness to pay
Type
Research Article
Information
Agricultural and Resource Economics Review , Volume 43 , Issue 2 , August 2014 , pp. 266 - 278
Copyright
Copyright © 2014 Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Akerlof, G., and Kranton, R. 2000. “Economics and Identity.” Quarterly Journal of Economics 115(3): 715–753.Google Scholar
Amos, A., Gray, D., Currie, C., and Elton, R. 1997. “Healthy or Druggy? Self-Image, Ideal Image, and Smoking Behavior among Young People.” Social Science and Medicine 45(6): 847–858.Google Scholar
Andreoni, J. 1989. “Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence.” Journal of Political Economy 97(6): 1447–1458.Google Scholar
Andreoni, J. 1990. “Impure Altruism and Donations to Public Goods: A Theory of Warm-glow Giving.” The Economic Journal 100(401): 464–477.Google Scholar
Andreoni, J., and Bernheim, D. 2009. “Social Image and the 50–50 Norm: A Theoretical and Experimental Analysis of Audience Effects.” Econometrica 77(5): 1607–1636.Google Scholar
Ariely, D., Bracha, A., and Meier, S. 2009. “Doing Good or Doing Well? Image Motivation and Monetary Incentives in Behaving Prosocially.” American Economic Review 99(1): 544–555.Google Scholar
Bénabou, R., and Tirole, J. 2006. “Incentives and Prosocial Behavior.” American Economic Review 96(5): 1652–1678.Google Scholar
Brekke, K., Kverndokk, S., and Nyborg, K. 2003. “An Economic Model of Moral Motivation.” Journal of Public Economics 87(9/10): 1967–1983.Google Scholar
Bruvoll, A., and Nyborg, K. 2004. “The Cold Shiver of Not Giving Enough: On the Social Cost of Recycling Campaigns.” Land Economics 80(4): 539–549.Google Scholar
Chilton, S., and Hutchinson, W.G. 1999. “Some Further Implications of Incorporating the Warm Glow of Giving into Welfare Measures: A Comment on the Use of Donation Mechanisms by Champ et al.” Journal of Environmental Economics and Management 37(2): 202–209.CrossRefGoogle Scholar
Choi, J., Bakshi, B., and Haab, T. 2010. “Effects of Carbon Price in the U.S. Economic Sectors, Resource Use, and Emissions: An Input-Output Approach.” Energy Policy 38(7): 3527–3536.Google Scholar
Conley, J., and Kung, F. 2010. “Private Benefits, Warm Glow, and Reputation in the Free and Open Source Software Production Model.” Journal of Public Economic Theory 12(4): 665–689.CrossRefGoogle Scholar
Crumpler, H., and Grossman, P. 2008. “An Experimental Test of Warm Glow Giving.” Journal of Public Economics 92(5/6): 1011–1021.Google Scholar
Fitzmaurice, J. 2005. “Incorporating Consumers’ Motivations into the Theory of Reasoned Action.” Psychology and Marketing 22(11): 911–929.CrossRefGoogle Scholar
Grubb, E.L., and Grathwohl, H.L. 1967. “Consumer Self-Concept, Symbolism, and Market Behavior: A Theoretical Approach.” Journal of Marketing 31(4): 22–27.CrossRefGoogle Scholar
Haab, T.C., and McConnell, K.E. 2002. Valuing Environmental and Natural Resources: The Econometrics of Non-Market Valuation. Cheltenham, UK: Edward Elgar Publishers.Google Scholar
Johansson-Stenman, O., and Martinsson, P. 2006. “Honestly, Why Are You Driving a BMW?” Journal of Economic Behavior and Organization 60(2): 129–146.Google Scholar
Konow, J. 2010. “Mixed Feelings: Theories of and Evidence on Giving.” Journal of Public Economics 94(3/4): 279–297.Google Scholar
Marsh, H.W., Hau, K.T., Sung, R.Y.T., and Yu, C.W. 2007. “Childhood Obesity, Gender, Actual-Ideal Body Image Discrepancies, and Physical Self-Concept in Hong Kong Children: Cultural Differences in the Value of Moderation.” Developmental Psychology 43(3): 647–662.CrossRefGoogle Scholar
Mayo, J., and Tinsley, C. 2009. “Warm Glow and Charitable Giving: Why the Wealthy Do Not Give More to Charity?” Journal of Economic Psychology 30(3): 490–499.Google Scholar
Mehta, A. 1999. “Using Self-Concept to Assess Advertising Effectiveness.” Journal of Advertising Research 39(1): 81–89.Google Scholar
Menges, R., Schroedner, C., and Traub, S. 2005. “Altruism, Warm Glow, and the Willingness-to-Donate for Green Electricity: An Artefactual Field Experiment.” Environmental and Resource Economics 31(4): 431–458.Google Scholar
Nunes, P., de Blaeij, A., and van den Bergh, J. 2009. “Decomposition of Warm Glow for Multiple Stakeholders: Stated Choice Valuation of Shellfishery Policy.” Land Economics 85(3): 485–499.Google Scholar
Nunes, P., and Schokkaert, E. 2003. “Identifying the Warm Glow Effect in Contingent Valuation.” Journal of Environmental Economics and Management 45(2): 231–245.Google Scholar
Ribar, D., and Wilhelm, M. 2002. “Altruistic and Joy-of-giving Motivations in Charitable Behavior.” Journal of Political Economy 110(2): 425–457.Google Scholar
Sirgy, J.M., Grewal, D., Mangleburg, T.F., Park, J., Chon, K., Claiborne, C.B., Johar, J.S., and Berkman, H. 1997. “Assessing the Predictive Validity of Two Methods of Measuring Self-Image Congruence.” Journal of the Academy of Marketing Science 25(3): 229–241.Google Scholar
Spreng, R., and Page, T. Jr. 2003. “A Test of Alternative Measures of Disconfirmation.” Decision Sciences 34(1): 31–62.Google Scholar