Revealed preferences for voluntary climate change mitigation when the purely individual perspective is relaxed – evidence from a framed field experiment
Andreas Löschel a,b, Bodo Sturm b,c, Reinhard Uehleke c,∗
a Westfälische Wilhelms-University Münster, Münster, Germany
b Centre for European Economic Research (ZEW), Mannheim, Germany
c Leipzig University of Applied Sciences, Leipzig, Germany
Abstract
We investigate the demand for voluntary climate change mitigation when the purely individual perspective of existing revealed preference studies is relaxed. This is achieved in two treatments; first, we deter- mine the information subjects receive about the demand revealed by other subjects in a similar decision making situation, second, collective action is implemented whereby all subjects are required to purchase the group’s median quantity at a given price. Participants in the experiment were offered the oppor- tunity to contribute to voluntary climate change mitigation by purchasing European Union Allowances. Purchased allowances were withdrawn from the European Emissions Trading Scheme. In our experiment, information about other subjects’ behavior has no effect on the demand for voluntary climate change mitigation. Under collective action, however, WTP, aggregate demand and the probability of purchasing allowances are higher compared to an individual contribution mechanism. Thus collective action curtails free riding, although it has no traceable effect on the provision level of the public good outside the ex- periment.
© 2017 Elsevier Inc. All rights reserved.
∗ Corresponding author at: University of Rostock, Chair for Agricultural Eco-
nomics, Justus-von-Liebig Weg 2, 18059 Rostock.
E-mail addresses: This email address is being protected from spambots. You need JavaScript enabled to view it. (A. Löschel), bodo.sturm@htwk->
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http://dx.doi.org/10.1016/j.socec.2016.12.007
2214-8043/© 2017 Elsevier Inc. All rights reserved.
