October 30, 2011

Policy-Instrument Choice and Benefit Estimates for Climate-Change Policy in the United States

by Matthew J. Kotchen, Kevin J. Boyle and Anthony A. Leiserowitz

- This paper provides the first willingness-to-pay (WTP) estimates in support of a national climate-change policy that are comparable with the costs of actual legislative efforts in the U.S. Congress. Based on a survey of 2,034 American adults, we find that households are, on average, willing to pay between $79 and $89 per year in support of reducing domestic greenhouse-gas (GHG) emissions 17 percent by 2020. Even very conservative estimates yield an average WTP at or above $60 per year.

Matthew J. Kotchen, Kevin J. Boyle and Anthony A. Leiserowitz (2011). "Policy-Instrument Choice and Benefit Estimates for Climate-Change Policy in the United States." NBER Working Paper No. 17539, Oct 2011.