Do wealth levels affect the contribution to negative externalities?

B-Tier
Journal: Journal of Behavioral and Experimental Economics
Year: 2020
Volume: 87
Issue: C

Authors (3)

Benito-Ostolaza, Juan M. (not in RePEc) Ezcurra, Roberto (Universidad Pública de Navarra) Osés-Eraso, Nuria (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper experimentally explores the link between poverty and decisions that lead environmental degradation. In the experiment, individuals with different wealth levels play a game that describes environmental degradation as a contribution to an activity that generates a negative externality. The experimental data show that wealth levels not related to the environment (exogenous poverty) play no significant role in environmental decisions. However, the variation in wealth as a consequence of the contribution to environmental degradation (endogenous poverty) affects the behavior of individuals, that enter a spiral of poverty and environmental degradation. These results suggest the existence of a poverty-environment trap.

Technical Details

RePEc Handle
repec:eee:soceco:v:87:y:2020:i:c:s2214804319304549
Journal Field
Experimental
Author Count
3
Added to Database
2026-01-24