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Can monetized carbon information increase pro-environmental behavior? Experimental evidence

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  • Schöller, Vanessa
  • Ulmer, Clara

Abstract

Firms increasingly publish information about their sustainability in annual reports and on products. However, it is unclear which information induces pro-environmental behavior most effectively. In an experiment, we compare the effect of carbon display in kilograms, abatement costs, and social costs, respectively, on individuals’ purchasing decisions. Contrasting previous literature, we find that the type of display has no significant impact on purchasing decisions. Nevertheless, most participants believe that social cost information leads to the largest carbon reduction by consumers, and many prefer this information. Our results have implications for managers and policymakers interested in setting standards for CO2 information.

Suggested Citation

  • Schöller, Vanessa & Ulmer, Clara, 2023. "Can monetized carbon information increase pro-environmental behavior? Experimental evidence," Ecological Economics, Elsevier, vol. 206(C).
    • Handle: RePEc:eee:ecolec:v:206:y:2023:i:c:s0921800923000228
    DOI: 10.1016/j.ecolecon.2023.107759
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    More about this item

    Keywords

    Sustainability reporting; Carbon label; Economic experiment; Social cost of carbon;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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