Revealed and Stated Preferences for CO2 Emissions Reduction: The Missing Link

43 Pages Posted: 23 Jul 2019

See all articles by Simona Bigerna

Simona Bigerna

Department of Economics, University of Perugia

Carlo Andrea Bollino

University of Perugia

Silvia Micheli

Guglielmo Marconi University

Paolo Polinori

University of Perugia - Department of Economics

Date Written: July 20, 2015

Abstract

The aim of this paper is to assess consumers’ attitudes in monetary terms toward the avoidance of CO2 emissions in the transport sector, using a meta-analysis approach drawing on 30 primary studies. We compute the implicit price for the avoidance of a kilogram of CO2 emissions, named PCO2. Our novel approach combines results from revealed preferences of conventional vehicle drivers for fuel price variation and stated preferences expressed by consumers for alternative fuel vehicles. We compare data collected from two strands of literature. Operationally, we recover the opportunity cost of achieving CO2 emissions reduction from the price elasticity of demand for traditional fossil fuels transport. We interpret the fuel market price response as a signal to estimate the opportunity cost of driving reduction and the related CO2 emissions. Then, we analyze the willingness to pay (willingness to accept) for alternative fuel vehicles, estimating a measure of the cost of CO2 avoidance. Our findings show that contextual and individual characteristics influence the implicit price for CO2 emissions avoidance. This implicit price is on average positive in the case of revealed preferences studies, whereas it is negative in the stated preferences studies. Although there are some important geographical differences, our results show that fuel taxes can be considered as an important additional instrument for environmental policy.

Keywords: revealed and stated preferences, CO2 emissions, meta-analysis, alternative fuel vehicles

JEL Classification: C39, Q51

Suggested Citation

Bigerna, Simona and Bollino, Carlo Andrea and Micheli, Silvia and Polinori, Paolo, Revealed and Stated Preferences for CO2 Emissions Reduction: The Missing Link (July 20, 2015). Available at SSRN: https://ssrn.com/abstract=3423442 or http://dx.doi.org/10.2139/ssrn.3423442

Simona Bigerna

Department of Economics, University of Perugia ( email )

Via A. Pascoli
Perugia, 06123
Italy

Carlo Andrea Bollino

University of Perugia

Via Pascoli 22
Perigoa, 06121
Italy

Silvia Micheli

Guglielmo Marconi University ( email )

Rome
Italy

Paolo Polinori (Contact Author)

University of Perugia - Department of Economics ( email )

via A. Pascoli, 20
Perugia, Perugia 06123
Italy
+39 075 5855002 (Phone)
+39 075 5855299 (Fax)

HOME PAGE: http://https://www.unipg.it/personale/paolo.polinori

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
9
Abstract Views
203
PlumX Metrics