Experiences and Environmental Preferences: the Case of Beijing Olympics

 Research Institute of Management and Economics

Southwestern University of Finance and Economics

 We compare Beijing residents’ preferences towards improved air quality before and after the Olympic Games, thereby measuring the effects on preferences of experiencing air quality improvements and the associated restrictive policies. An individual’s preference is represented by her willingness to pay for extending the Olympics air quality program, elicited using state of the art contingent valuation methodology (CVM). We find that experiencing the “good” improved air quality - during the Olympics increased Beijing residents’ valuation of this good. Experiencing the driving restriction policy, on the other hand, reduced the support for such policy among car owners. The overall experience effect varies across the population.