Cost Perceptions and Voter Demand for Environmental Risk Regulation: The Double Effect of Hidden Costs

This paper reports the first detailed empirical examination of the effects of voter cost perceptions on demand for environmental risk regulations. Using a statewide random sample of Washington's electorate, I examine voting behavior for a proposed regulation of gasoline stations under varying cost and distributional assumptions. Results suggest normative concerns are as important in explaining support as are expected risk reduction benefits. These norms include making polluters pay, imposing larger burdens on polluters with higher ability to pay, and enforcing public property rights. In contrast, potential price increases as a result of regulation have negligible effects on voter support.