The purpose of this paper is two folds: (1) to identify the effects of the warm glow of giving in WTP for oneself by assuming errors in bivariate normal distribution and (2) to examine their effects on scope sensitivity and on income elasticity. We conducted a contingent valuation survey to depict the value for self, that for others, and warm glow in Sapporo City, Japan, in 2000. We constructed the model that the respondents decide the value for self and warm glow endogenously. We showed that WTPcold, which does not include warm glow, is scope sensitive enough in comparing with the scope sensitivity of the stated WTP; On the other hand, we showed that WTPcold has lower income elasticity, than stated WTP.
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