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Abstract Across the globe, people tend to misperceive their true position in the income distribution. Theory predicts that a correction of this misperception leads to an increase in the demand for redistribution among the richer half of the population if people are averse to inequality. While recent studies do not always confirm this effect with respect to income redistribution, we test whether correcting perceived relative income has a significant and positive effect on the demand for environmental public goods, such as clean air, that goes beyond the demand for income redistribution. This prediction rests on the assumption that individuals derive a larger disutility from the existence of an unequal access to environmental public goods than from an unequal distribution of income, as the former might be perceived by many as more unfair. We test this hypothesis empirically with an online survey experiment with 2,500 Indian MTurkers. Across the globe, people tend to misperceive their true position in the income distribution. Theory predicts that a correction of this misperception leads to an increase in the demand for redistribution among the richer half of the population if people are averse to inequality. We test whether correcting perceived relative income has a significant and positive effect on the demand for environmental public goods, such as clean air. We test this hypothesis empirically with an online survey experiment with 2,500 Indian MTurkers and an additional 2,500 Indian respondents recruited by Dynata.
Last Published July 19, 2022 03:27 AM September 15, 2022 05:13 AM
Experimental Design (Public) As our main focus, we aim to manipulate the perceived relative income to test for a relationship between perceived income and revealed preferences for environmental quality. As our main focus, we aim to manipulate the perceived relative income to test for a relationship between perceived relative income and revealed preferences for environmental quality.
Additional Keyword(s) Air pollution; Income inequality; Voluntary contributions; Perceived relative income; Inequality aversion; Air pollution; Public Goods; Voluntary contributions;
Secondary Outcomes (End Points) 1. Perception of own number of life years lost due to air pollution exposure 2. Index of stated support for public policies 3. Index of stated adoption of defensive mechanisms 1. Stated support for public policies 2. Stated adoption of defensive mechanisms 3. Perception of own health impact due to air pollution exposure
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Affiliation Heidelberg University University of Stuttgart
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