Understanding and valuing environmental issues: the effects of availability and anchoring on judgment.

This paper addresses the effects of availability and anchoring-and-adjustment on people's beliefs and values concerning environmental issues. The first three studies focus on lay people's perceptions of the causes of large scale environmental risks, the second series of three studies deals with how people value environmental goods and how much they are prepared to pay to mitigate environmental risks. In studies 1-3 we investigate the effects of availability and anchoring-and-adjustment on estimating the contribution of various factors to large scale environmental risks. Highly complex risks such as acid rain and global warming tend to be associated with multiple causes, and our results show that estimating the role of these causes is clearly affected by availability and anchoring-and-adjustment. Both have sizeable effects and persist over time. Moreover, corrective procedures only seem to have a limited effect. Availability and anchoring-and-adjustment not only play a role in judging the possible causes of risks; they also play a role in research attempting to assess the public's willingness to pay (WTP) to protect our environment. The outcomes of WTP surveys are often used as a tool to help policy decision making. In the second part of this article we present three studies on this issue. Results provide further evidence of the impact of the two heuristics on the outcomes of WTP research. Implications for research and practice are briefly discussed.