Essays on the economics of stigma and disgust: behavioral evidence from functional magnetic resonance imaging and field experiments
Date
2019
Authors
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Journal ISSN
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Publisher
University of Delaware
Abstract
Differences in Concern about Water Reuse: Consumer Response to Food Produced with Recycled Irrigation Water in the United States and Israel ☐ Abstract: In 2018, approximately 29% of the continental United States experienced some level of drought, conditions that are predicted to spread as climate change hastens shifts in the global water cycle. Despite recycled water being a financially feasible, safe, and commonly proposed solution to water scarcity, broad adoption of recycled irrigation water at the farm level in the United States and across the world will depend on consumer acceptance of such practices. This study utilized economic field experiments, involving 660 adult consumers, in the United States and Israel to examine consumer preferences in two countries that are heterogeneous in terms of drought impact and experience with recycled water. We investigate how consumers respond to different types of recycled irrigation water and if exposure to scientific information about the benefits and risks of recycled water affects these preferences. Results show that the use of recycled water for irrigation diminishes consumer demand for produce by 86% in the United States, but only 20% in Israel. The reductions in willingness-to-pay vary by water type in both countries and are affected by exposure to scientific information and consumers previous knowledge about recycled water. These results suggest that concerns regarding food produced with recycled irrigation water are likely to vary by country and experience with the use of recycled water. ☐ A Neuroeconomic Investigation of Disgust in Food Purchasing Decisions ☐ Abstract: Dealing with large-scale societal problems such as water scarcity often requires changes in behavior that consumers resist. Some sustainable, cost-effective, and safe solutions are even rejected because of a psychological response of disgust, such as food produced with recycled water to supplement traditional water supplies and crickets as a replacement for water-intensive proteins like beef. This study, involving 51 adult participants, used functional magnetic resonance imaging to explore consumers neural responses to these types of food and the role price plays in their decisions. A video that promotes the use of recycled water was also tested to see if consumers’ negative reaction towards it can be ameliorated through information and messaging. The results show activation in the insular cortex and parts of the limbic system, indicating feelings of disgust. After the treatment video, neural activity did not change in these regions, however, their decisions about food produced with recycled water did. Together, these findings suggest disgust is a part of the decision process, that it lingers and could be difficult to mitigate, and that after a behavioral intervention there are other dimensions of the decision process that become more important. Further, the results support the concept that the decision process can be represented using a drift diffusion model and that that the computation and comparison of decision values can be modulated in response to a behavioral intervention. ☐ Mitigating Stigma on Recycled Water: Celebrity Endorsements, Social Comparisons, and Trophic Levels ☐ Abstract: The stigmatization of water and food products can act as a constraint on markets, preventing scientifically safe solutions to environmental problems, like water scarcity, from being implemented. Recycled water is a financially feasible, reliable and safe solution to water scarcity; however, on average, consumers either require a large price reduction to purchase and use products made with recycled water or they outright reject them. There is evidence that the stigma attached to water and food can be mitigated through behavioral interventions, but if new agricultural technologies, like recycled water are going to help counteract the effects of climate change, new stigma mitigation strategies need to be explored. Using framed field experiments, involving 314 adult participants, we test if passing recycled water through an aquifer before using it for potable and irrigation purposes removes the stigma attached to it. We also test if trophic levels act as a stigma mitigating barrier and the effect of social marketing, specifically a celebrity endorsement video and a social comparison statement. Results show that passing recycled water through an aquifer removes the stigma attached to it and that a food crop possesses the same level of stigma as the water it is irrigated with, but the animal that eats it has less stigma attached to it. However, we find no significant effect from a celebrity endorsement video, a social comparison statement, or the two combined on participant’s decisions about products produced with different types of water.