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Altruism and the Economic Values of Environmental and Social Policies

✍ Scribed by María Xosé Vázquez Rodríguez; Carmelo J. León


Book ID
111580035
Publisher
Springer
Year
2004
Tongue
English
Weight
113 KB
Volume
28
Category
Article
ISSN
0924-6460

No coin nor oath required. For personal study only.

✦ Synopsis


Altruism is a type of non-use value which can have different definitions depending on the type of goods entering the utility function of the altruists and their expectations about the contributions of others. The purpose of this paper is to measure the trade-offs between different types of altruist values originating from social and environmental policies. Environmental policies are concerned with reducing health effects from a power plant while social policies involve both the attainment of public facilities for education and leisure and an increase in the income of the affected population. The empirical application utilizes a choice experiment technique which allows for valuation of multiple goods. Health effects are decomposed into the values of the risk of becoming ill, the duration of the episodes and the limitations imposed by illness. Altruist values are elicited from a population that is not affected by pollution. Results show that altruism is significant for policies directed to reducing health effects and improving the income level of the affected population, whereas there is egoism for a policy aimed at improving public facilities in the polluted suburb. The value of altruism is significantly influenced by the expectations of net benefits to be received by the affected population.


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