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Warm Glow, Good Feelings, and Contingent Valuation

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  • Bishop, Richard C.

Abstract

In the contingent valuation (CV) literature, confusion exists about warm glow and embedding effects. I show that i) some writers follow Andreoni’s (1989) definition of warm glow, but others think that subjects answering CV questions load up, free of charge, on “good feelings” from supporting the environment; ii) Andreoni’s warm glow would lead to embedding effects only in extreme circumstances; iii) Andreoni’s warm glow should be counted in valuation studies; and iv) there is scant evidence for good feelings being the source of embedding effects. In fact, embedding effects may not be limited to CV studies.

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  • Bishop, Richard C., 2018. "Warm Glow, Good Feelings, and Contingent Valuation," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 43(3), September.
    • Handle: RePEc:ags:jlaare:276497
    DOI: 10.22004/ag.econ.276497
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    2. Endre Kildal Iversen & Kristine Grimsrud & Yohei Mitani & Henrik Lindhjem, 2022. "Altruist Talk May (also) Be Cheap: Revealed Versus Stated Altruism as a Predictor in Stated Preference Studies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 83(3), pages 681-708, November.
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    7. Moisés Carrasco Garcés & Felipe Vasquez-Lavin & Roberto D. Ponce Oliva & José Luis Bustamante Oporto & Manuel Barrientos & Arcadio A. Cerda, 2021. "Embedding effect and the consequences of advanced disclosure: evidence from the valuation of cultural goods," Empirical Economics, Springer, vol. 61(2), pages 1039-1062, August.
    8. David Worden & Getu Hailu & Kate Jones & Yu Na Lee, 2022. "The effects of bundling on livestock producers' valuations of environmentally friendly traits available through genomic selection," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(4), pages 263-286, December.

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