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The Influence of Collective Action on the Demand for Voluntary Climate Change Mitigation in Hypothetical and Real Situations

Author

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  • Reinhard Uehleke

    (Leipzig University of Applied Science (HTWK)
    University of Rostock)

  • Bodo Sturm

    (Leipzig University of Applied Science (HTWK))

Abstract

In this experiment, we investigate demand for voluntary climate change mitigation. Subjects decide between a cash prize and an allowance from the EU Emissions Trading Scheme for one ton of $$\hbox {CO}_{2}$$ CO 2 that will be deleted after the completion of the experiment. Decisions were implemented either as purely individual or as a collective action using majority voting. We vary the incentives of the decision situation in which we distinguish between real monetary incentives and a hypothetical decision situation with, and without, a cheap talk script. Collective decision making affects demand positively in the hypothetical decision situation only and we observe a significant hypothetical bias in the demand for voluntary climate change mitigation.

Suggested Citation

  • Reinhard Uehleke & Bodo Sturm, 2017. "The Influence of Collective Action on the Demand for Voluntary Climate Change Mitigation in Hypothetical and Real Situations," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(3), pages 429-454, July.
    • Handle: RePEc:kap:enreec:v:67:y:2017:i:3:d:10.1007_s10640-016-0028-0
    DOI: 10.1007/s10640-016-0028-0
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    1. Andreas Löschel & Jiansuo Pei & Ran Wang & Bodo Sturm & Wolfgang Buchholz & Zhongxiu Zhao, 2021. "The Demand for Global and Local Environmental Protection: Experimental Evidence from Climate Change Mitigation in Beijing," Land Economics, University of Wisconsin Press, vol. 97(1), pages 137-154.
    2. Sturm, Bodo & Pei, Jiansuo & Wang, Ran & Löschel, Andreas & Zhao, Zhongxiu, 2019. "Conditional cooperation in case of a global public good – Experimental evidence from climate change mitigation in Beijing," China Economic Review, Elsevier, vol. 56(C), pages 1-1.
    3. Lea S. Svenningsen, 2019. "Social preferences for distributive outcomes of climate policy," Climatic Change, Springer, vol. 157(2), pages 319-336, November.
    4. Lea Skræp Svenningsen, 2017. "Distributive outcomes matter: Measuring social preferences for climate policy," IFRO Working Paper 2017/11, University of Copenhagen, Department of Food and Resource Economics.
    5. Kesternich, Martin & Bartels, Lara, 2021. "Do Municipal Climate Protection Activities interfere with Individual Engagement?," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242456, Verein für Socialpolitik / German Economic Association.
    6. Andreas Loschel & Michael Price & Laura Razzolini & Madeline Werthschulte, 2020. "Negative income shocks and the support of environmental policies - Insights from the COVID-19 pandemic," Framed Field Experiments 00710, The Field Experiments Website.
    7. Weimann, Joachim & Brosig-Koch, Jeannette & Heinrich, Timo & Hennig-Schmidt, Heike & Keser, Claudia, 2022. "CO2 Emission reduction – Real public good provision by large groups in the laboratory," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 1076-1089.

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    More about this item

    Keywords

    Demand for voluntary climate change mitigation; Public goods; Collective action; Hypothetical bias;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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