Willingness to Pay in Different Countries

by Patrick Quarberg

In an attempt to determine the consumer’s willingness to pay for climate change mitigation, Carlson et al.(2012) conducted a survey in three countries in 2010; China, Sweden, and the United States. In general, they observed that the Swedes tended to be most informed and concerned about the effects of climate change, and thus had a higher willingness to pay (WTP). WTP values were found by asking respondents to pick a number from a matrix that identified the most they would be willing to pay to mitigate climate change. The survey asked respondents how much they would pay for different levels of CO2 reduction, specifically 30%, 60%, and 85% reduction in CO2 emissions. Additionally, if respondents stated that their WTP was higher than $220, they were asked to fill in their actual WTP in an open-ended question. Even if respondents had a zero response at the 30% or 60% level, they were still asked about the next level of reduction. The survey also asked several questions about attitudes toward climate change, including whether climate change could be stopped, or just mitigated. Continue reading