Journal of Agricultural and Resource Economics
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In the contingent valuation (CV) literature, confusion exists about warm glow and embedding effects. I show that i) some writers follow Andreoni’s (1989) definition of warm glow, but others think that subjects answering CV questions load up, free of charge, on “good feelings” from supporting the environment; ii) Andreoni’s warm glow would lead to embedding effects only in extreme circumstances; iii) Andreoni’s warm glow should be counted in valuation studies; and iv) there is scant evidence for good feelings being the source of embedding effects. In fact, embedding effects may not be limited to CV studies.
This article discusses the results of four experiments to test the accuracy of recreational expenditures reported in survey relative to expenditures reported in dairies. We found few situations in which the reported expenditures in the surveys and diaries differ significantly. In general, we conclude that individuals are able to accurately report recreational expenditures in ex post mail surveys. Given the wide usage of survey expenditure data by economists, we find this results encouraging.
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