Explorer Project4.2 The Price of Breathing

Abstract:

The „Price of Breathing“ project studies why preferences for environmental quality in many developing countries are surprisingly low, although pollution levels that threaten both human health and economic productivity remain high. Here, the research team addresses both questions of barriers towards governmental regulation as well as the limitations of self- regulation in the form of personal defensive measures against pollution. Since environmental pollution is often accompanied by social inequality, the research agenda recognizes that potential solutions to the pollution crises may lie in redistributive measures.

The research team focuses on the dramatic air pollution crisis in India (see Figure), a setting in which both pollution and social inequality are severe. Using specific incentive structures in online survey experiments, research efforts attempt to identify the determinants of policy support and of adopting self-defensive measures against air pollution. Moreover, the project tests cognitive processes that may lead to misperceptions of the pollution problem as a whole and thereby may suppress otherwise beneficial efforts of self-regulation.

Preliminary research results indicate that the extent of social inequality in the Indian society is underestimated. Especially those in the richer segment of society underestimate their relatively high income and thereby underestimate their relatively important role in financing policies that try to reduce overall pollution levels. Yet, the survey experiment shows that these misperceptions can effectively be corrected, inducing support for public policies against air pollution.

While the projects primarily aims to better understand the drivers of human behavior in the framework of environmental pollution and social inequality, the project will generate important policy recommendations, both for political actors, as well as individuals households.

Status: 2nd quarter of 2022