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Sustainability 2015, 7(7), 9608-9627; doi:10.3390/su7079608

Factors Influencing Compensation Demanded for Environmental Impacts Generated by Different Economic Activities

1
Industrial and Systems Engineering Department, Pontificia Universidad Católica de Chile, Vicuña Mackenna 4860, Santiago 7820436, Chile
2
Industrial Engineering School, Universidad Diego Portales, Vergara 432, Santiago 8370190, Chile
3
Engineering Sciences Department, Universidad Andres Bello, Av. República 252, Santiago 8370134, Chile
4
National Research Center for Integrated Natural Disaster Management, CONICYT/FONDAP/15110017, Santiago 7820436, Chile
*
Author to whom correspondence should be addressed.
Academic Editor: Giuseppe Ioppolo
Received: 12 May 2015 / Revised: 27 June 2015 / Accepted: 5 July 2015 / Published: 17 July 2015
(This article belongs to the Section Economic, Business and Management Aspects of Sustainability)
View Full-Text   |   Download PDF [846 KB, uploaded 17 July 2015]   |  

Abstract

This work advances the understanding of compensation demanded for environmental impacts on atmosphere, lakes and rivers, soil, and ocean generated by mining, urban, fishing and agriculture activities. Our aims are to determine whether compensation demanded depends on the standard variables used in the field of risk perception (as perceived risk, public acceptability and trust in regulating authorities), and to explore whether these relationships depend on the environment affected and on the economic activity generating the impacts. General Linear Models were used to analyze survey responses from 427 citizens of Santiago, Chile. Results showed that compensation demanded depends on perceived risk, acceptability, and on the economic activity, but not on the environment affected. Acceptability depends on trust in authorities, on perceived risk and on the economic activity. Perceived risk depends on trust, the economic activity and the environment affected. Overall, environmental impacts from the mining industry are perceived as riskier, less acceptable, and have a higher compensation demanded than those generated by the other sectors. These results suggest that to achieve sustainable development, regulations should consider not only environmental impacts but also the economic activity originating them. View Full-Text
Keywords: environmental policy; compensation demanded; public acceptability; perceived risk; social trust; environmental impacts; economic activity environmental policy; compensation demanded; public acceptability; perceived risk; social trust; environmental impacts; economic activity
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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MDPI and ACS Style

Gutiérrez, V.V.; Cifuentes, L.A.; Bronfman, N.C. Factors Influencing Compensation Demanded for Environmental Impacts Generated by Different Economic Activities. Sustainability 2015, 7, 9608-9627.

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