An experimental investigation of the impacts of persuasion and information acquisition of non-use values for climate change adaptation
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Working Paper 125
Abstract
Focusing on the estimation of WTP for climate change adaptation projects in vulnerable areas around the world, this study explores the divergence between economic non-use values produced using a standard CV survey approach, and those produced using a persuasive’ CV survey in which most sources of informational bias are systematically exploited to maximise expressed WTP.
We interact the persuasion analysis with a cross-cutting treatment involving optional information access. It is proposed that allowing respondents to voluntarily access added information emulates rather more closely consumer pre-purchase behaviour in the market.
We examine information acquisition using two treatments: a pre-set default option (the default is “no added information wanted”) versus an “active decision” option (“would you like added information?”). The interactions produce an eight-cell experimental design. We find that, contrary to expectations, the persuasion treatment has a negative influence on WTP.
We also find that persuasive information appears to dissuade respondents from accessing added information when this is offered as an opt-in default. Effort spent accessing added information has a strong influence on WTP but the sign on the coefficient varies depending on how the information was offered to respondents.
Tanya O’Garra and Susanna Mourato