Making Climate-Friendly Choices in Hard Times : Panel Evidence on the Covid-19 Shock and the (In)Stability of Climate-Related Preferences in Chile

The stability of climate-related preferences is a crucial assumption of economic models. To evaluate whether the stability of individual climate-related preferences is related to the health and economic shocks induced by the COVID-19 pandemic, we employed a longitudinal stated choice experiment survey in Chile among students. The key finding from our analysis with mixed logit models is that preferences for low-carbon food consumption are not stable in response to an exogenous shock. Preferences for a reduction climate impact of food choices are increasing in light of the COVID-19 pandemic. By investigating heterogeneity in preferences due to individual concerns about health and the economic consequences of the pandemic, we provide evidence that the COVID-19 pandemic drives instability. Our results suggest that the COVID-19 pandemic has triggered an increase in awareness of the necessity for climate action and individual behavioral change