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Article
Status quo bias and public policy: evidence in the context of carbon mitigation
Environmental Research Letters
  • Corey Lang, University of Rhode Island
  • Michael Weir
  • Shanna Pearson-Merkowitz, University of Rhode Island
Document Type
Article
Date of Original Version
1-1-2021
Department
Environmental and Natural Resource Economics
Abstract

This article examines whether individuals’ preferences for government policy are affected by status quo bias. We designed a contingent valuation survey that asks respondents directly about their willingness to pay (WTP) for their state to be a part of a regional carbon mitigation policy. The survey has two randomized frames, which differ in whether or not their state is already part of the policy. We distributed the survey to a representative sample of Rhode Island residents (N = 844). We find that respondents who believe that Rhode Island would be joining the policy for the first time have a WTP to join of $170 (quite similar to previous research at a national scale), whereas those who believe Rhode Island is already part of the policy are willing to pay 2.5 times more, or $420, to stay in the program. Our results suggest that citizens greatly prefer existing carbon mitigation policies to new policies, which implies that carbon policy will be more successful if enacted through the legislature instead of popular vote.

Creative Commons License
Creative Commons Attribution 4.0
Citation Information

Lang, C., Weir, M. & Pearson-Merkowitz, S. (2021). Status quo bias and public policy: evidence in the context of carbon mitigation. Environ. Res. Lett., 16(5), 054076. https://doi.org/10.1088/1748-9326/abeeb0

Available at: https://doi.org/10.1088/1748-9326/abeeb0