Attenuation of Free Riding in Environmental ValuationEvidence from a Field Experiment Using the Contingent Valuation Method

Abstract

Conventional economic theory assumes that individuals evaluate policy alternatives based primarily on expected outcomes rather than on the processes through which those outcomes arise. In the context of environmental valuation, this implies that individuals determine their willingness to pay (WTP) for environmental improvements solely based on the benefits associated with those improvements. However, growing empirical evidence suggests that contextual factors—such as perceptions of responsibility for environmental degradation—may influence individuals’ valuation decisions. This study examines whether emphasizing human responsibility for environmental degradation can reduce free-riding behavior in environmental valuation. A field experiment was conducted in the Bale Eco-region of Ethiopia to investigate how information framing affects individuals’ willingness to contribute financially to a reforestation program. Specifically, the experiment evaluates whether informing respondents that logging activities contribute significantly to forest degradation influences their willingness to pay. The findings indicate that highlighting human-induced deforestation significantly increases respondents’ willingness to contribute to forest restoration initiatives. Moreover, the results suggest that emphasizing responsibility mitigates free-riding behavior: once respondents are informed about the human causes of deforestation, their willingness to pay becomes less sensitive to information about conservation efforts undertaken elsewhere. These results contribute to the environmental economics literature by demonstrating that survey framing can influence stated preferences and potentially improve the reliability of contingent valuation estimates.