Eishers are risk-averse according to most empirical studies, while expected-utility theory predicts risk neutrality even for sizable stakes.

This paper analyzes the marginal willingness to pay for changes in noise levels related to changes in the volume of flight movements at a city airport in Stockholm, Sweden, by using a choice experiment.

The Highly Indebted Poor Countries (HIPC) initiative is intended to improve the situation of the poorest developing countries by reducing their debt burden and by permitting increased spending on education and health services. However, at the same time the developed countries funding the HIPC initiative retain agricultural policies that hinder exports form the developing countries in those sectors where they have comparative advantages.

This paper analyzes the welfare effects of improved health status through increased water quality using a choice experiment. The survey was administered to a random sample of households in metropolitan Cairo, Egypt.

Using a contingent valuation survey, people’s willingness to pay for a given risk reduction is found to be much larger, consistently more than two times as large, when traveling by air compared to by taxi.

Follow-up questions revealed that an important reason for this discrepancy is that many experience a higher mental suffering from flying, and that they are willing to pay to reduce this suffering. It was also consistently found that people are willing to pay more for a certain risk reduction if the original price was higher. Policy implications are discussed.

We present a model of fishers’ gear choice, which allows for heterogeneity both in production technology and risk preferences and apply it on a panel of Swedish trawlers.

Groundwater can augment total agricultural water supply in areas where rainfall is persistently low, but can also function as a buffer source of water in areas where rainfall is high but variable. In arid countries it is important to examine which of these functions dominates, as this has implications for water policy.

The interest for wetlands is increasing, not only because of the possibility of a cost-efficient uptake of nutrients, but also because wetlands can be designed to provide other services. What values that are supplied depend largely on the design.

The results from a survey of Swedish commercial fishers on regulation compliance and attitudes to control and restrictions are reported. According to the responding fishers, 90% of all Swedish catches are reported, in spite of limited control efforts.

Social inequality aversion is measured through a veil-of-ignorance experiment with Indian students. The median relative risk aversion is found to be quite high, about 3, and independent caste.

Co-authors:

G. Gupta and O. Johansson-Stenman