Seemingly irrelevant factors and willingness to block polluting investments

Peer Reviewed icon Peer Reviewed
Date issued
December 2023
Subject
Extractive Industry;
Trust;
Willingness to Pay
JEL code
C90 - Design of Experiments: General;
D70 - Analysis of Collective Decision-Making: General;
D90 - Intertemporal Choice: General;
L71 - Mining, Extraction, and Refining: Hydrocarbon Fuels;
Q30 - Nonrenewable Resources and Conservation: General;
Q51 - Valuation of Environmental Effects
Category
Working Papers
Using an online multi-country video-vignette survey experiment, we measure bias against extractive industries and foreign firms in individuals perceptions and preferences related to industrial projects with potential economic benefits and environmental costs. Individuals face a hypothetical industrial investment project with a randomly assigned implementing firm, which varies in one or two dimensions: nationality (foreign or national), and industrial sector (extractive or generic). We elicit several incentivized and non-incentivized measures of acceptance of hypothetical investments. We find a precisely estimated null effect on willingness to pay to block the projects across experimental treatments: respondents express similar reactions to the same information independently of the firms origin or industrial sector.
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