Exploring Different Assumptions about Outcome-Related Risk Perceptions in Discrete Choice Experiments

Abstract Environmental outcomes are often affected by the stochastic nature of environment and ecosystem, as well effectiveness governmental policy in combination with human activities. Incorporating information about risk discrete choice experiments has been suggested to enhance survey credibility. Although some studies have incorporated design treated it either weights corresponding environmental or a stand-alone factor, little research discussed implications those behavioural assumptions under explored individuals’ outcome-related perceptions context where can be described improvement deterioration. This paper investigates for gain loss domains together examines differences choices air quality changes China using experiment. Results suggest that respondents consider both domains, their elicited patterns best direct aversion, which states individuals obtain disutility directly from increasing regardless associated outcomes. We discuss implication our results provide recommendations on model specification when incorporating risk.