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The Purchase of Equipment in Consumer Production of Outdoor Experiences
Authors:Erling Røed Larsen
Affiliation:(1) Inequality and Consumer Behaviour, Statistics Norway, Unit for Taxation, Norway;(2) Institute of Industrial Relations, University of California, Berkeley, 2521 Channing Way, Berkeley, California 94720, USA
Abstract:Consumers use combinations of goods to produce experiences. In order to produce outdoor experiences, consumers include environmental amenities as production factors in addition to purchasable instruments such as equipment. While amenities are not marketed, equipment is. Inspecting consumer purchases of the latter may uncover attitudes towards the former. Purchases of equipment are realized money outlays in a market and constitute lower bounds for the willingness to pay for one factor in outdoor experience production. This study investigates income and demographic effects in the demand for outdoor equipment over time in Norway, and examines the proportion of purchasing households for each year. Results show that equipment is a luxury item, and that it becomes more popular over time. The findings are relevant to policymakers in two ways since use of equipment may entail environmental degradation, but purchases of equipment may reflect a willingness to pay for environmental standards.
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