Explanations of insensitivity to scope in terms of an income effect are implausible,
because the amounts are so small. Explanations in terms of substitution effects
are equally unattractive. Several studies have shown that reminding subjects of
substitutes or of their prior endowment does not substantially change their re-
sponse Loomis et al., 1994; Neill, 1995; Ritov, Baron and Hershey, 1993.. An
interpretation in terms of substitution effects, if it were taken seriously, would be
potentially disastrous for the environment. It would indeed be good news for
polluters if the public’s demand for clean lakes in Ontario could be satisfied by
cleaning up a small subset of its lakes.