IDEAS home Printed from https://ideas.repec.org/a/fan/efeefe/vhtml10.3280-efe2023-001005.html
   My bibliography  Save this article

Mapping the empirical relationship between environmental performance and social preferences: Evidence from macro data

Author

Listed:
  • Marco Vincenzi

Abstract

This paper investigates the relationship between measures of environmental performance and of social preferences, thanks to the availability of a recently published dataset on global pref- erences. Using cross-sectional observations from 76 countries, this study finds evidence from macro data of a positive and statistically significant relationship between measures of proso- cial preferences, such as positive reciprocity, trust, and altruism, and environmental policy indicators in the categories of agriculture, forestry, and climate change after controlling for economic and geospatial factors. At the micro level, the results presented in this paper suggest a broader theory of collective action that is based on a behavioral approach to climate policy to mitigate motivational crowd out in settings of high reciprocity and trust. At the macro level, the results presented in this paper suggest a broader theory of climate clubs that includes pro- social preferences, such as positive reciprocity, trust, and altruism, as key cooperation mech- anisms in International Environmental Agreements.

Suggested Citation

  • Marco Vincenzi, 2023. "Mapping the empirical relationship between environmental performance and social preferences: Evidence from macro data," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2023(1), pages 85-102.
    • Handle: RePEc:fan:efeefe:v:html10.3280/efe2023-001005
    as

    Download full text from publisher

    File URL: http://www.francoangeli.it/riviste/Scheda_Rivista.aspx?IDArticolo=74239&Tipo=ArticoloPDF
    Download Restriction: Single articles can be downloaded buying download credits, for info: https://www.francoangeli.it/DownloadCredit
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ernst Fehr & Simon Gächter, 2000. "Fairness and Retaliation: The Economics of Reciprocity," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 159-181, Summer.
    2. Gary Charness & Matthew Rabin, 2002. "Understanding Social Preferences with Simple Tests," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(3), pages 817-869.
    3. Diamond, Douglas W, 1991. "Monitoring and Reputation: The Choice between Bank Loans and Directly Placed Debt," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 689-721, August.
    4. Nathan Nunn & Diego Puga, 2012. "Ruggedness: The Blessing of Bad Geography in Africa," The Review of Economics and Statistics, MIT Press, vol. 94(1), pages 20-36, February.
    5. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 817-868.
    6. Lange, Andreas & Vogt, Carsten & Ziegler, Andreas, 2007. "On the importance of equity in international climate policy: An empirical analysis," Energy Economics, Elsevier, vol. 29(3), pages 545-562, May.
    7. Lange, Andreas & Vogt, Carsten, 2003. "Cooperation in international environmental negotiations due to a preference for equity," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 2049-2067, September.
    8. Lange, Andreas & Löschel, Andreas & Vogt, Carsten & Ziegler, Andreas, 2010. "On the self-interested use of equity in international climate negotiations," European Economic Review, Elsevier, vol. 54(3), pages 359-375, April.
    9. Armin Falk & Anke Becker & Thomas Dohmen & David Huffman & Uwe Sunde, 2023. "The Preference Survey Module: A Validated Instrument for Measuring Risk, Time, and Social Preferences," Management Science, INFORMS, vol. 69(4), pages 1935-1950, April.
    10. Zerbib, Olivier David, 2019. "The effect of pro-environmental preferences on bond prices: Evidence from green bonds," Journal of Banking & Finance, Elsevier, vol. 98(C), pages 39-60.
    11. Volland, Benjamin, 2017. "The role of risk and trust attitudes in explaining residential energy demand: Evidence from the United Kingdom," Ecological Economics, Elsevier, vol. 132(C), pages 14-30.
    12. Diamond, Douglas W, 1989. "Reputation Acquisition in Debt Markets," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 828-862, August.
    13. Vincenzi, Marco & Ozabaci, Deniz, 2017. "The Effect of Public Policies on Inducing Technological Change in Solar Energy," Agricultural and Resource Economics Review, Cambridge University Press, vol. 46(1), pages 44-72, April.
    14. Harbaugh, William T., 1998. "What do donations buy?: A model of philanthropy based on prestige and warm glow," Journal of Public Economics, Elsevier, vol. 67(2), pages 269-284, February.
    15. Andreas Lange, 2006. "The Impact of Equity-preferences on the Stability of International Environmental Agreements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(2), pages 247-267, June.
    16. Farrow, Katherine & Grolleau, Gilles & Ibanez, Lisette, 2017. "Social Norms and Pro-environmental Behavior: A Review of the Evidence," Ecological Economics, Elsevier, vol. 140(C), pages 1-13.
    17. Jo, Ara & Carattini, Stefano, 2021. "Trust and CO2 emissions: Cooperation on a global scale," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 922-937.
    18. Jean Tirole & Roland Bénabou, 2006. "Incentives and Prosocial Behavior," American Economic Review, American Economic Association, vol. 96(5), pages 1652-1678, December.
    19. Nyborg, Karine, 2018. "Reciprocal climate negotiators," Journal of Environmental Economics and Management, Elsevier, vol. 92(C), pages 707-725.
    20. Urs Fischbacher & Simon Gachter, 2010. "Social Preferences, Beliefs, and the Dynamics of Free Riding in Public Goods Experiments," American Economic Review, American Economic Association, vol. 100(1), pages 541-556, March.
    21. Bechtel, Michael M. & Genovese, Federica & Scheve, Kenneth F., 2019. "Interests, Norms and Support for the Provision of Global Public Goods: The Case of Climate Co-operation," British Journal of Political Science, Cambridge University Press, vol. 49(4), pages 1333-1355, October.
    22. Manfred Milinski & Dirk Semmann & Hans-Jürgen Krambeck, 2002. "Reputation helps solve the ‘tragedy of the commons’," Nature, Nature, vol. 415(6870), pages 424-426, January.
    23. Carraro, Carlo & Siniscalco, Domenico, 1993. "Strategies for the international protection of the environment," Journal of Public Economics, Elsevier, vol. 52(3), pages 309-328, October.
    24. Michael Kosfeld & Akira Okada & Arno Riedl, 2009. "Institution Formation in Public Goods Games," American Economic Review, American Economic Association, vol. 99(4), pages 1335-1355, September.
    25. Fischbacher, Urs & Gachter, Simon & Fehr, Ernst, 2001. "Are people conditionally cooperative? Evidence from a public goods experiment," Economics Letters, Elsevier, vol. 71(3), pages 397-404, June.
    26. William Nordhaus, 2019. "Climate Change: The Ultimate Challenge for Economics," American Economic Review, American Economic Association, vol. 109(6), pages 1991-2014, June.
    27. Jon Hovi & Hugh Ward & Frank Grundig, 2015. "Hope or Despair? Formal Models of Climate Cooperation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(4), pages 665-688, December.
    28. Alló, Maria & Loureiro, Maria L., 2014. "The role of social norms on preferences towards climate change policies: A meta-analysis," Energy Policy, Elsevier, vol. 73(C), pages 563-574.
    29. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 353-377.
    30. Yu-Hsuan Lin, 2018. "How social preferences influence the stability of a climate coalition," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 0(2), pages 151-166.
    31. Owen, Ann L. & Videras, Julio, 2008. "Trust, cooperation, and implementation of sustainability programs: The case of Local Agenda 21," Ecological Economics, Elsevier, vol. 68(1-2), pages 259-272, December.
    32. Hadjiyiannis Costas & İriş Doruk & Tabakis Chrysostomos, 2012. "International Environmental Cooperation under Fairness and Reciprocity," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 12(1), pages 1-30, August.
    33. Elinor Ostrom, 2000. "Collective Action and the Evolution of Social Norms," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 137-158, Summer.
    34. Heinz, Nicolai & Koessler, Ann-Kathrin, 2021. "Other-regarding preferences and pro-environmental behaviour: An interdisciplinary review of experimental studies," Ecological Economics, Elsevier, vol. 184(C).
    35. D’Orazio, Paola & Popoyan, Lilit, 2019. "Fostering green investments and tackling climate-related financial risks: Which role for macroprudential policies?," Ecological Economics, Elsevier, vol. 160(C), pages 25-37.
    36. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-1458, December.
    37. Frey, Bruno S, 1997. "A Constitution for Knaves Crowds Out Civic Virtues," Economic Journal, Royal Economic Society, vol. 107(443), pages 1043-1053, July.
    38. Astrid Dannenberg & Bodo Sturm & Carsten Vogt, 2010. "Do Equity Preferences Matter for Climate Negotiators? An Experimental Investigation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(1), pages 91-109, September.
    39. Simona Beretta & Mario A. Maggioni, 2023. "Catholic Social Teaching and Economics: Reflections on the Economy of Francesco," The Review of Faith & International Affairs, Taylor & Francis Journals, vol. 21(1), pages 66-78, January.
    40. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-477, June.
    41. Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December.
    42. Wolfgang Buchholz & Todd Sandler, 2017. "Successful Leadership in Global Public Good Provision: Incorporating Behavioural Approaches," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(3), pages 591-607, July.
    43. Dioikitopoulos, Evangelos V. & Ghosh, Sugata & Karydas, Christos & Vella, Eugenia, 2020. "Roads to prosperity without environmental poverty: The role of impatience," Economics Letters, Elsevier, vol. 186(C).
    44. Michael Kosfeld & Devesh Rustagi, 2015. "Leader Punishment and Cooperation in Groups: Experimental Field Evidence from Commons Management in Ethiopia," American Economic Review, American Economic Association, vol. 105(2), pages 747-783, February.
    45. Olivier David Zerbib, 2019. "The effect of pro-environmental preferences on bond prices: Evidence from green bonds," Post-Print halshs-02008641, HAL.
    46. James Andreoni & John Miller, 2002. "Giving According to GARP: An Experimental Test of the Consistency of Preferences for Altruism," Econometrica, Econometric Society, vol. 70(2), pages 737-753, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stefano Carattini & Simon Levin & Alessandro Tavoni, 2019. "Cooperation in the Climate Commons," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 13(2), pages 227-247.
    2. Nyborg, Karine, 2018. "Reciprocal climate negotiators," Journal of Environmental Economics and Management, Elsevier, vol. 92(C), pages 707-725.
    3. Jo, Ara & Carattini, Stefano, 2021. "Trust and CO2 emissions: Cooperation on a global scale," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 922-937.
    4. Charles D. Kolstad, 2014. "International Environmental Agreements among Heterogeneous Countries with Social Preferences," NBER Working Papers 20204, National Bureau of Economic Research, Inc.
    5. Crawford, Ian & Harris, Donna, 2018. "Social interactions and the influence of “extremists”," Journal of Economic Behavior & Organization, Elsevier, vol. 153(C), pages 238-266.
    6. Buchholz, Wolfgang & Peters, Wolfgang & Ufert, Aneta, 2018. "International environmental agreements on climate protection: A Binary choice model with heterogeneous agents," Journal of Economic Behavior & Organization, Elsevier, vol. 154(C), pages 191-205.
    7. Mark Schopf, 2024. "Self-Enforcing International Environmental Agreements and Altruistic Preferences," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(9), pages 2309-2359, September.
    8. Kurt A. Ackermann & Ryan O. Murphy, 2019. "Explaining Cooperative Behavior in Public Goods Games: How Preferences and Beliefs Affect Contribution Levels," Games, MDPI, vol. 10(1), pages 1-34, March.
    9. Russell Golman, 2016. "Good manners: signaling social preferences," Theory and Decision, Springer, vol. 81(1), pages 73-88, June.
    10. Joachim Schleich & Claudia Schwirplies & Andreas Ziegler, 2014. "Private provision of public goods: Do individual climate protection efforts depend on perceptions of climate policy?," MAGKS Papers on Economics 201453, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    11. Andreas Löschel & Dirk Rübbelke, 2014. "On the Voluntary Provision of International Public Goods," Economica, London School of Economics and Political Science, vol. 81(322), pages 195-204, April.
    12. Dong, Bin & Dulleck, Uwe & Torgler, Benno, 2012. "Conditional corruption," Journal of Economic Psychology, Elsevier, vol. 33(3), pages 609-627.
    13. Thorsten Chmura & Christoph Engel & Markus Englerth, 2013. "Selfishness As a Potential Cause of Crime. A Prison Experiment," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2013_05, Max Planck Institute for Research on Collective Goods.
    14. Fluet, Claude & Galbiati, Rpbertp, 2016. "Lois et normes : les enseignements de l'économie comportementale," L'Actualité Economique, Société Canadienne de Science Economique, vol. 92(1-2), pages 191-215, Mars-Juin.
    15. Karakostas, Alexandros & Kocher, Martin G. & Matzat, Dominik & Rau, Holger A. & Riewe, Gerhard, 2023. "The team allocator game: Allocation power in public goods games," Games and Economic Behavior, Elsevier, vol. 140(C), pages 73-87.
    16. Lopera Baena, Maria Adelaida, 2016. "Evidence of Conditional and Unconditional Cooperation in a Public Goods Game: Experimental Evidence from Mali," VfS Annual Conference 2016 (Augsburg): Demographic Change 145797, Verein für Socialpolitik / German Economic Association.
    17. Becchetti, Leonardo & Corrado, Germana & Pelligra, Vittorio & Rossetti, Fiammetta, 2016. "Happiness and Preferences in a Legality Social Dilemma," AICCON Working Papers 145-2016, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    18. Hongyu Guan & Xianchen Zhu & Ping Zhang, 2016. "Rule-Inequality-Aversion Preference and Conditional Cooperation in Public Goods Experiments: Economic Experiment Evidence from China," Group Decision and Negotiation, Springer, vol. 25(4), pages 799-825, July.
    19. Carsten Vogt, 2016. "Climate Coalition Formation When Players are Heterogeneous and Inequality Averse," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(1), pages 33-59, September.
    20. Luigi Butera & John A. List, 2017. "An Economic Approach to Alleviate the Crises of Confidence in Science: With an Application to the Public Goods Game," NBER Working Papers 23335, National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fan:efeefe:v:html10.3280/efe2023-001005. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stefania Rosato (email available below). General contact details of provider: http://www.francoangeli.it/riviste/sommario.aspx?IDRivista=10 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.