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Who wants to save the Baltic Sea when the success is uncertain?

Therese Lindahl and Tore Söderqvist. Regional Environmental Change (2011), vol. 11 (2) :133-147.

Abstract:

Recent research shows that the Baltic Sea has experienced an ecosystem change and is now in a degraded state with respect to water quality. Moreover, it is uncertain whether this deterioration is reversible. The purpose of the study is to analyze how people respond to this type of uncertainty when asked if they would be willing to pay something in order to make it possible to carry out an abatement program. The purpose of program is to improve the marine water quality of the Baltic Sea but the program is only successful with a certain probability. Our mixed results could have important policy implications as well as implications for future survey work as the answer to the question depends not only on the problem description but also on other variables, such as experience and current conditions.

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Keywords: Irreversibility, Scope test, Uncertainty, Valuation, Convex-concave resources, Baltic Sea

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