A note on the warm glow of giving and scope sensitivity in contingent valuation studies

This note develops a behavioral framework to classify individual contingent valuation (CV) respondents in terms of the warm glow and altruistic motives in their WTP responses. We suggest that at least five possible behavioral categories for CV responses may exist, depending on the type of underlying preferences and whether respondents are satiated or non-satiated with respect to the good. An empirical example suggests that the warm glow motive may be present in the majority of bids, although its presence does not necessarily preclude scope sensitivity to the quantity/quality of an environmental good. (C) 2000 Elsevier Science B.V. All rights reserved