Detecting Social Network Effects on Willingness to Pay for Environmental Improvements using Egocentric Network Measures

We are social animals, and how much we care about the environment is likely influenced by those we associate with. However, most nonmarket valuation studies in economics do not consider people’s social ties. This is partly due to the fact that the development of economic models demonstrating the importance of social networks for individual willingness to pay is relatively recent. Theoretical results are largely based on completely mapped social networks, which are generally impossible to map. We explore the use of practical, local network measures.

John Janmaat is an associate professor in the Department of Economics, Philosophy and Political Science at the Okanagan campus of the University of British Columbia. He currently holds a Regional Innovation Chair in Water Resources and Environmental Sustainability. His current research includes looking for a signature of drinking water quality in housing prices, measuring the willingness to pay for small environmental projects, and examining the opportunities and challenges for agricultural adaptation to climate change in the Okanagan and Cariboo regions of British Columbia. Prof. Janmaat holds an MBA in concentration finance and a PhD in Environmental and Resource Economics and Econometrics.