The Effects of Spatial Scale on Donations to Improve Nature and the Environment : An Incentivized Experiment Approach

This paper examines the the role of spatial scale in donations to improve nature and the environment. We conduct an incentivized experiment which assesses how London residents' donations to improve nature and the environment varies across a spatial scale segmented in three parts. Each treatment group is assigned a different donation option in three different locations: London, UK or global. Participants are randomised in one of the three treatments and asked how much of the potential £50 prize money they are willing to donate. This novel methodology aims to reduce hypothetical market bias, free-riding and protest responses. Final results show that donations for the improvement of nature and the environment increase as distance increases. The statistically significant difference lies between the local and national treatment versus the global treatment. This paper hypothesizes that non-use values have a bigger impact on donations than use values. The results of this paper could have important policymaking implications and provide a strong argument for increased conservation efforts of nature and the environment