Show simple item record

dc.contributor.author
Farsi, Mehdi
dc.date.accessioned
2017-06-08T16:59:33Z
dc.date.available
2017-06-08T16:59:33Z
dc.date.issued
2007
dc.identifier.uri
http://hdl.handle.net/20.500.11850/5380
dc.description.abstract
This paper extends the linear utility model commonly used for estimating the willingness to pay for non-market goods to a non-linear model with decreasing marginal utility. The proposed approach relaxes the assumption of constant rate of substitution between income and non-market commodities, an assumption which can be especially restrictive in cases when the non-market good is a luxury commodity or a new good whose benefits are not completely known. The adopted non-linear formulation can therefore accommodate risk-averse behavior with respect to nonmarket goods particularly when the non-market attributes are measured by discrete variables. The proposed models have been applied to data from a choice experiment for energy efficiency measures in apartment buildings. The econometric specification is based on a fixed-effect logit model. The results suggest that ignoring consumers’ risk-aversion toward new non-market goods could lead to an underestimation of the marginal willingness to pay. However, consistent with previous studies the non-linear effect of income does not have a considerable effect on the estimation results.
dc.language.iso
en
dc.publisher
Swiss Federal Institute of Technology, CEPE - Centre for Energy Policy and Economics
dc.subject
choice experiment
dc.subject
willingness to pay
dc.subject
risk aversion
dc.subject
energy efficiency
dc.subject
housing JEL classification: Q51
dc.subject
C25
dc.subject
D12
dc.subject
C91
dc.title
Risk-Aversion and Willingness to Pay in Choice Experiments
dc.type
Working Paper
ethz.journal.title
CEPE Working Paper
ethz.journal.issue
55
ethz.pages.start
1
ethz.pages.end
26
ethz.notes
.
ethz.identifier.nebis
004298743
ethz.publication.place
Zürich
ethz.publication.status
published
ethz.leitzahl
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::03539 - Filippini, Massimo / Filippini, Massimo
ethz.leitzahl
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::03539 - Filippini, Massimo / Filippini, Massimo
ethz.leitzahl.certified
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::03539 - Filippini, Massimo / Filippini, Massimo
ethz.leitzahl.certified
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::03539 - Filippini, Massimo / Filippini, Massimo
ethz.identifier.url
http://www.erasmusenergy.com/downloadattachment.php?aId=4fe6a53105540f827fd63cecb32df38c&articleId=163
ethz.date.deposited
2017-06-08T16:59:57Z
ethz.source
ECIT
ethz.identifier.importid
imp59364b8c3e01641200
ethz.ecitpid
pub:15650
ethz.eth
yes
ethz.availability
Metadata only
ethz.rosetta.installDate
2017-07-20T17:18:04Z
ethz.rosetta.lastUpdated
2018-11-02T04:15:44Z
ethz.rosetta.versionExported
true
ethz.COinS
ctx_ver=Z39.88-2004&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.atitle=Risk-Aversion%20and%20Willingness%20to%20Pay%20in%20Choice%20Experiments&rft.jtitle=CEPE%20Working%20Paper&rft.date=2007&rft.issue=55&rft.spage=1&rft.epage=26&rft.au=Farsi,%20Mehdi&rft.genre=preprint&
 Search via SFX

Files in this item

FilesSizeFormatOpen in viewer

There are no files associated with this item.

Publication type

Show simple item record