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Can Defaults Save the Climate? Evidence from a Field Experiment on Carbon Offsetting Programs

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  • Jorge Araña
  • Carmelo León

Abstract

Individual preferences for environmental policies can be influenced by the frame in which choices and decisions are presented. In this paper we present results of a field experiment on the contributions to carbon offsetting programs under two alternative treatments for the default option. The opt-in treatment asked subjects to pay for the policy proposal while the opt-out treatment asked subjects if they wanted to be excluded from payment for the policy proposal. The results show that the frame of the default option had a significant effect on the amount of money paid for the policy proposal. Subjects were more likely to accept the policy proposal if the default option was the opt-out treatment. The results have implications for the design of environmental policies. Copyright Springer Science+Business Media Dordrecht 2013

Suggested Citation

  • Jorge Araña & Carmelo León, 2013. "Can Defaults Save the Climate? Evidence from a Field Experiment on Carbon Offsetting Programs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(4), pages 613-626, April.
    • Handle: RePEc:kap:enreec:v:54:y:2013:i:4:p:613-626
    DOI: 10.1007/s10640-012-9615-x
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    Cited by:

    1. Kai-Uwe Kuhn & Neslihan Uler, 2019. "Behavioral sources of the demand for carbon offsets: an experimental study," Experimental Economics, Springer;Economic Science Association, vol. 22(3), pages 676-704, September.
    2. Ziegler, Andreas & Schwirplies, Claudia, 2014. "The determinants of voluntary carbon offsetting: A micro-econometric analysis of individuals from Germany and the United States," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100422, Verein für Socialpolitik / German Economic Association.
    3. Gabriela Michalek & Georg Meran & Reimund Schwarze & Özgür Yildiz, 2015. "Nudging as a new 'soft' tool in environmental policy. An analysis based on insights from cognitive and social psychology," Discussion Paper Series RECAP15 21, RECAP15, European University Viadrina, Frankfurt (Oder).
    4. Mello, Fabiana Peixoto de, 2024. "Voluntary carbon offset programs in aviation: A systematic literature review," Transport Policy, Elsevier, vol. 147(C), pages 158-168.
    5. Raisa Sherif, 2021. "Are pro-environment behaviours substitutes or complements? Evidence from the field," Working Papers tax-mpg-rps-2021-03, Max Planck Institute for Tax Law and Public Finance.
    6. Bruns, Hendrik & Kantorowicz-Reznichenko, Elena & Klement, Katharina & Luistro Jonsson, Marijane & Rahali, Bilel, 2016. "Can Nudges Be Transparent and Yet Effective?," WiSo-HH Working Paper Series 33, University of Hamburg, Faculty of Business, Economics and Social Sciences, WISO Research Laboratory.

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