Policy-instrument choice and benefit estimates for climate-change policy in the United States
By: Matthew J. Kotchen, Kevin J. Boyle, Anthony A. Leiserowitz
Contributors: Boyle, Kevin J.; Leiserowitz, Anthony A.; National Bureau of Economic Research
Series: NBER working paper series -- working paper 17539; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 17539.
Publisher: National Bureau of Economic Research
Published: 2011
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "This paper provides the first willingness-to-pay (WTP) estimates in support of a national climate-change policy that are comparable with the costs of actual legislative efforts in the U.S.  Congress.  Based on a survey of 2,034 American adults, we find that households are, on average, willing to pay between $79 and $89 per year in support of reducing domestic greenhouse-gas (GHG) emissions 17 percent by 2020.  Even very conservative estimates yield an average WTP at or above $60 per year.  Taking advantage of randomized treatments within the survey valuation question, we find that mean WTP does not vary substantially among the policy instruments of a cap-and-trade program, a carbon tax, or a GHG regulation.  But there are differences in the sociodemographic characteristics of those willing to pay across policy instruments.  Greater education always increases WTP.  Older individuals have a lower WTP for a carbon tax and a GHG regulation, while greater household income increases WTP for these same two policy instruments.  Republicans, along with those indicating no political party affiliation, have a significantly lower WTP regardless of the policy instrument.  But many of these differences are no longer evident after controlling for respondent opinions about whether global warming is actually happening"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 1/5/2012.

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