Exploring Different Assumptions about Outcome-Related Risk Perceptions in Discrete Choice Experiments View Full Text


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Article Info

DATE

2021-12-14

AUTHORS

Hangjian Wu, Emmanouil Mentzakis, Marije Schaafsma

ABSTRACT

Environmental outcomes are often affected by the stochastic nature of the environment and ecosystem, as well as the effectiveness of governmental policy in combination with human activities. Incorporating information about risk in discrete choice experiments has been suggested to enhance survey credibility. Although some studies have incorporated risk in the design and treated it as either the weights of the corresponding environmental outcomes or as a stand-alone factor, little research has discussed the implications of those behavioural assumptions under risk and explored individuals’ outcome-related risk perceptions in a context where environmental outcomes can be either described as improvement or deterioration. This paper investigates outcome-related risk perceptions for environmental outcomes in the gain and loss domains together and examines differences in choices about air quality changes in China using a discrete choice experiment. Results suggest that respondents consider the information of risk in both domains, and their elicited behavioural patterns are best described by direct risk aversion, which states that individuals obtain disutility directly from the increasing risk regardless of the associated environmental outcomes. We discuss the implication of our results and provide recommendations on the choice of model specification when incorporating risk. More... »

PAGES

531-572

References to SciGraph publications

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    URI

    http://scigraph.springernature.com/pub.10.1007/s10640-021-00638-x

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    DIMENSIONS

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