The agriculture and food sectors contribute significantly to greenhouse gas emissions. About 15 percent of food-related carbon emissions are channeled through restaurants. Using a contingent valuation (CV) method with double-bounded dichotomous choice (DBDC) questions, this article investigates U.S. consumers’ willingness to pay (WTP) for an optional restaurant surcharge in support of carbon emission reduction programs. The mean estimated WTP for a surcharge is 6.05 percent of an average restaurant check, while the median WTP is 3.64 percent. Our results show that individuals have a higher WTP when the surcharge is automatically added to restaurant checks. We also find that an information nudge—a short climate change script—significantly increases WTP. Additionally, our results demonstrate that there is heterogeneity in treatment effects across consumers’ age, environmental awareness, and economic views. Our findings suggest that a surcharge program could transfer a meaningful amount of the agricultural carbon reduction burden to consumers that farmers currently shoulder.
The spread of COVID-19 in the Spring of 2020 prompted state and local governments to implement a variety of policies, including stay-at-home (SAH) orders and mandatory mask requirements, aimed at reducing the infection rate and the severity of the pandemic's impact. We implement a discrete choice experiment survey in three major U.S. States-California, Georgia, and Illinois-to empirically quantify individuals' willingness to stay (WTS) home, measured as the number of weeks of a potential new SAH order, to prevent the spread of the COVID-19 disease and explore factors leading to their heterogeneous WTS. Our results demonstrate broad support for statewide mask mandates. In addition, the estimate of WTS to lower new positive cases is quite large, approximately five and half weeks, even though staying home lowers utility. We also find that individuals recognize the tradeoffs between case reduction and economic slowdown stemming from SAH orders when they decide to stay home or not. Finally, pandemic related factors such as age, ability to work from home, and unemployment status are the main drivers of the heterogeneity in individuals' WTS.
The spread of COVID-19 in the Spring of 2020 prompted state and local governments to implement a variety of policies, including stay-at-home (SAH) orders and mandatory mask requirements, aimed at reducing the infection rate and the severity of the pandemic’s impact. We implement a discrete choice experiment survey in three major U.S. States—California, Georgia, and Illinois—to empirically quantify individuals’ willingness to stay (WTS) home, measured as the number of weeks of a potential new SAH order, to prevent the spread of the COVID-19 disease and explore factors leading to their heterogeneous WTS. Our results demonstrate broad support for statewide mask mandates. In addition, the estimate of WTS to lower new positive cases is quite large, approximately five and half weeks, even though staying home lowers utility. We also find that individuals recognize the trade-offs between case reduction and economic slowdown stemming from SAH orders when they decide to stay home or not. Finally, pandemic related factors such as age, ability to work from home, and unemployment status are the main drivers of the heterogeneity in individuals’ WTS.
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