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Declared Preference Method—Research Experiment Concerning Air Quality

  • Małgorzata Burchard-DziubińskaEmail author
  • Elżbieta Antczak
  • Agnieszka Rzeńca
Conference paper
Part of the Springer Proceedings in Business and Economics book series (SPBE)

Abstract

Externalities take place when an economic operator does not experience all costs (in case of negative externalities) or benefits (in case of positive externalities) involved in his activities, which are passed on to other economic operators. Specific challenge to economists is posed by negative technological externalities, which have also triggered experimental research studies using the declared (stated) preference method. The aim of the experiment was to find the most preferred solution geared towards the elimination of the source of air pollution in a village and to learn about respondents’ willingness to pay (WTP) for the public good supplied as a result of such elimination. Out of the five proposed options, one of the most preferred by respondents was a voluntary fundraising initiative to collect money for the construction of the neighbour’s connection that would go on until they collect PLN 10 k but not longer than for a year. By using the WTP method, we arrived at an unambiguous valuation of the good expressed in terms of money. The most preferred tax rate revealed as a result of the survey suggests that the valuation of the public good was underestimated. As a result, the situation described in the case study cannot be resolved successfully.

Keywords

Public goods Externalities Declared preference method Air pollution 

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Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  • Małgorzata Burchard-Dziubińska
    • 1
    Email author
  • Elżbieta Antczak
    • 1
  • Agnieszka Rzeńca
    • 1
  1. 1.Faculty of Economics and SociologyUniversity of LodzLodzPoland

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