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Can verifiable information cut through the noise about climate protection? An experimental auction test

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  • Onur Sapci
  • Aaron Wood
  • Jason Shogren
  • Jolene Green

Abstract

Using an experimental auction, we explore how verifiable information affects the willingness to pay (WTP) for two climate friendly goods given the politicized climate change debate. We test whether the dissemination of (scientific) verifiable information lets subjects cut through the media noise. We define our baseline by first examining how noisy information (pro and con) about climate change affects WTP. We then consider how third party verifiable information within this noisy information affects WTP. Our results suggest subjects could cut through noisy information to process verifiable information. We find a significant WTP premium for climate protection. The verifiable information treatment increases the premium for both shade-grown coffee (by 51 %) and recycled paper (by 48 %). This suggests the WTP premium for climate change depends on the available information flow and the characteristics of the climate friendly good. Copyright Springer Science+Business Media Dordrecht 2016

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  • Onur Sapci & Aaron Wood & Jason Shogren & Jolene Green, 2016. "Can verifiable information cut through the noise about climate protection? An experimental auction test," Climatic Change, Springer, vol. 134(1), pages 87-99, January.
    • Handle: RePEc:spr:climat:v:134:y:2016:i:1:p:87-99
    DOI: 10.1007/s10584-015-1502-3
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    5. Thunström, Linda & Gilbert, Ben & Ritten, Chian Jones, 2018. "Nudges that hurt those already hurting – distributional and unintended effects of salience nudges," Journal of Economic Behavior & Organization, Elsevier, vol. 153(C), pages 267-282.

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