The influence of ethical attitudes on the demand for environmental recreation: incorporating lexicographic preferences

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2013-07-09

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Abstract

This article examines the relationships between different ethical attitudes toward environmental quality and the ‘use’ values obtained from the environment. In particular, we consider individuals who have duty-based ethical attitudes that lead to lexicographic preferences for environmental quality. We show that individuals with duty-based ethical attitudes have recreation demand functions that are ‘kinked,’ exhibiting perfectly inelastic behavior over some range of income. However, the kinks cannot be identified from typical cross-sectional data, and to the extent that observed recreation demand for these individuals differs from those with neoclassical preferences, such differences could be captured empirically through a proxy variable that measures ethical attitudes. A more fundamental issue is that changes in welfare for duty-based individuals cannot be determined from their estimated demand function: while an exogenous rise in environmental quality is likely to increase their demand for recreation by these individuals, additional recreation is not the reason for an improvement in well-being. An empirical model to identify the effect of ethical attitudes on recreation is illustrated using survey data on stated preferences for visits to urban parks.

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Keywords

Environmental ethics, Protest bids, Use values, Lexicographic preferences

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