Arbeitspapier

Perceived relative income and preferences for public good provision

Guided by a theoretical framework, we study how perceived relative income affects preferences for public goods. In a randomized survey experiment, we inform respondents from India of their official income rank and elicit preferences for air quality, including actual contributions to environmental initiatives. Right-wing supporters withdraw contributions when perceived relative income increases. The effect coincides with diminished health concerns and lower intentions to utilize private protection measures against air pollution. In contrast, center-left supporters do not reduce contributions. A second survey experiment demonstrates the causality of the relationship using a novel treatment that exogenously shifts relative income perceptions.

Language
Englisch

Bibliographic citation
Series: AWI Discussion Paper Series ; No. 729

Classification
Wirtschaft
Survey Methods; Sampling Methods
Personal Income, Wealth, and Their Distributions
Public Goods
Health and Inequality
Economic Development: Human Resources; Human Development; Income Distribution; Migration
Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
Subject
perceived relative income
public goods
voluntary contributions
airpollution

Event
Geistige Schöpfung
(who)
Balietti, Anca
Budjan, Angelika J.
Eymess, Tillmann
Event
Veröffentlichung
(who)
University of Heidelberg, Department of Economics
(where)
Heidelberg
(when)
2023

DOI
doi:10.11588/heidok.00033423
Handle
URN
urn:nbn:de:bsz:16-heidok-334239
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Balietti, Anca
  • Budjan, Angelika J.
  • Eymess, Tillmann
  • University of Heidelberg, Department of Economics

Time of origin

  • 2023

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