December 5, 2010

Willingness to Pay for Climate Policy: A Review of Estimates

by Evan Johnson and Gregory F. Nemet

- We surveyed estimates of consumer willingness to pay (WTP) for climate policy to: (1) assess the validity of this explanation, (2) compare elicitation techniques, and (3) explore factors that might explain variation in WTP estimates. We recalculated WTP estimates on an equivalent basis across 27 studies and found a range for WTP of $22-$437/household annually, with a median of $135. We also discuss outliers not included in this range.

Johnson, E. and G.F. Nemet (2010). "Willingness to Pay for Climate Policy: A Review of Estimates." La Follette School Working Paper No. 2010-011, Jun 2010.