are Altruistic Preferences?
Altruism is the concern for others. We know from studies that individuals are often willing to pay more when there are reductions in risks to themselves as well as others. That is, many studies show that individuals express altruism when asked how much they would be willing to pay to reduce risks to themselves as well as other people. Since most environmental policy addresses public risks that we all face in common, then it may be important to capture these altruistic preferences in our benefit-cost analysis. This issue is one of the subjects for EPA’s upcoming consultation with the Environmental Economics Advisory Committee of the Science Advisory Board. Back to top.