Is willingness to contribute for environmental protection in Sweden affected by social capital?

George Marbuah

doi:10.1007/s10018-019-00238-6

Abstract

This paper investigates the role of social capital in influencing individuals’ willingness to contribute to environmental protection in Sweden. Four indices of social capital comprising social trust, institutional trust, civic participation and a composite index comprising all considered elements of social capital were constructed to analyse their respective association with individual decisions to contribute. Using data from the environment module of the 2010 International Social Survey Programme, we empirically show that all four social capital parameters are significant and robust drivers of Swedish public’s willingness to contribute when the payment vehicles are increased higher prices or taxes or through lifestyle changes to protect the environment. Statistically, a significant association was observed for social trust and civic participation. Institutional trust is not significant when the payment vehicle is a reduction in the standard of living. Overall, however, the composite index of social capital is a robust predictor of likelihood to contribute irrespective of the payment vehicle.

Highlights

The existing literature on the environment has identified and highlighted several factors that drive people to make financial contributions toward the provision of a public good such as the environment (see Mitchell and Carson 1989; Meyer and Liebe1 3 Vol.:(0123456789)Environmental Economics and Policy Studies (2019) 21:451–4752010)
This paper aims to empirically investigate the extent to which different social capital constructs are related to individual willingness to contribute for environmental protection in Sweden
We estimate ordered logistic regressions to empirically examine the nexus between individual willingness to contribute (WTC) and its association with social capital

Summary

Introduction

The existing literature on the environment has identified and highlighted several factors that drive people to make financial contributions toward the provision of a public good such as the environment (see Mitchell and Carson 1989; Meyer and Liebe1 3 Vol.:(0123456789)Environmental Economics and Policy Studies (2019) 21:451–4752010). Environmental Economics and Policy Studies (2019) 21:451–475. An emerging strand of literature in environmental management has emphasised the critical role played by social capital in influencing pro-environmental attitudes (see Polyzou et al 2011). Despite this recognition, studies in this area of research are limited but have been growing in the last few years. Recent evidence in the literature indicates that social capital is positively linked to willingness to contribute (WTC) for environmental goods, environmental regulation/policy and management success (see Gelissen 2007; Torgler and García-Valiñas 2007; Jones et al 2009, 2010).. Recent evidence in the literature indicates that social capital is positively linked to willingness to contribute (WTC) for environmental goods, environmental regulation/policy and management success (see Gelissen 2007; Torgler and García-Valiñas 2007; Jones et al 2009, 2010). Rupasingha et al (2000) assert that “when social capital is present, externalities are internalised, which has the effect of eliminating or reducing the free rider problem and misuse of public goods while at the same time increasing investments in public goods”

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