Are Stated Preferences Sensitive to Funding Sources? A Tax Reallocation Scheme to Value Marine Restoration

Remoundou, Kyriaki and Adaman, Fikret and Koundouri, Phoebe and Nunes, Paulo A.L.D. (2011): Are Stated Preferences Sensitive to Funding Sources? A Tax Reallocation Scheme to Value Marine Restoration. Published in:

Abstract

This paper uses a tax revenues reallocation scheme as the payment vehicle in a choice experiment to value marine restoration in the Black Sea. Two reallocation treatments are administered; one proposing to reduce current public expenditures on renewable energy projects and the other, the training budget for civil servants. We examine the sensitivity of preferences and valuation estimates to the budget source used to finance the restoration program. Results reveal that preferences and marginal rates of substitution significantly differ between the two treatments. In the civil servants’ budget reallocation treatment, the reallocation coefficient is positive, implying that redistribution is utility-enhancing.

• Item Type: MPRA Paper
• Language: English
• Keywords: choice experiment, payment vehicle, tax revenues reallocation, marine resources, Black Sea
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling; G - Financial Economics > G0 - General

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