Factors influencing compensation demanded for environmental impacts generated by different economic activities

Virna Vaneza Gutiérrez, Luis Abdón Cifuentes, Nicolás C. Bronfman

Research output: Contribution to journalArticle

Abstract

This work advances the understanding of compensation demanded for environmental impacts on atmosphere, lakes and rivers, soil, and ocean generated by mining, urban, fishing and agriculture activities. Our aims are to determine whether compensation demanded depends on the standard variables used in the field of risk perception (as perceived risk, public acceptability and trust in regulating authorities), and to explore whether these relationships depend on the environment affected and on the economic activity generating the impacts. General Linear Models were used to analyze survey responses from 427 citizens of Santiago, Chile. Results showed that compensation demanded depends on perceived risk, acceptability, and on the economic activity, but not on the environment affected. Acceptability depends on trust in authorities, on perceived risk and on the economic activity. Perceived risk depends on trust, the economic activity and the environment affected. Overall, environmental impacts from the mining industry are perceived as riskier, less acceptable, and have a higher compensation demanded than those generated by the other sectors. These results suggest that to achieve sustainable development, regulations should consider not only environmental impacts but also the economic activity originating them.

Original languageEnglish
Pages (from-to)9608-9627
Number of pages20
JournalSustainability (Switzerland)
Volume7
Issue number7
DOIs
Publication statusPublished - 1 Jan 2015

Keywords

  • Compensation demanded
  • Economic activity
  • Environmental impacts
  • Environmental policy
  • Perceived risk
  • Public acceptability
  • Social trust

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Renewable Energy, Sustainability and the Environment
  • Management, Monitoring, Policy and Law

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