Demand for Environmental Goods: Evidence from Voting Patterns on California Initiatives
This paper studies voting behavior on 16 environmental ballot propositions in California in order to characterize the demand for environmental goods. The environment is found to be a normal good for people with mean incomes, but some environmental goods are inferior for people with high incomes, at least when supplied collectively. An important "price" of environmental goods is reduced income in the construction, farming, forestry, and manufacturing industries. In most cases, income and price can explain most of the variation in voting; it is not essential to introduce non-economic concepts such as ideology and politics.
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