Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/278544 
Year of Publication: 
2023
Series/Report no.: 
AWI Discussion Paper Series No. 729
Publisher: 
University of Heidelberg, Department of Economics, Heidelberg
Abstract: 
Guided by a theoretical framework, we study how perceived relative income affects preferences for public goods. In a randomized survey experiment, we inform respondents from India of their official income rank and elicit preferences for air quality, including actual contributions to environmental initiatives. Right-wing supporters withdraw contributions when perceived relative income increases. The effect coincides with diminished health concerns and lower intentions to utilize private protection measures against air pollution. In contrast, center-left supporters do not reduce contributions. A second survey experiment demonstrates the causality of the relationship using a novel treatment that exogenously shifts relative income perceptions.
Subjects: 
perceived relative income
public goods
voluntary contributions
airpollution
JEL: 
C83
D31
H41
I14
O15
Q53
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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