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Effects of personal carbon allowances on decision-making: evidence from an experimental simulation

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  • STUART BRYCE CAPSTICK
  • ALAN LEWIS

Abstract

Behavioural influences of personal carbon trading (PCT) beyond those anticipated by pure price effects have been a theoretically attractive, yet empirically elusive, feature of such schemes. Computer-based simulation is used to examine the effects of participants' decisions on their personal carbon allocations within a PCT context. Evidence is presented about participants' tendencies to make more energy-conserving decisions as a consequence of attending to a restrictive and diminishing carbon allowance-independent of other financial and carbon cost information provided-suggesting that a form of 'carbon budgeting' is occurring. Further measurements indicate that the extent of carbon reduction achieved within the simulated PCT framework varies according to pro-environmental attitudes. Evidence is also presented that the size of participants' footprints correlates inversely with support for PCT; and that proenvironmental attitudes correlate positively with support for PCT. The advantages and drawbacks of using simulations for examining behavioural responses to PCT are discussed.

Suggested Citation

  • Stuart Bryce Capstick & Alan Lewis, 2010. "Effects of personal carbon allowances on decision-making: evidence from an experimental simulation," Climate Policy, Taylor & Francis Journals, vol. 10(4), pages 369-384, July.
    • Handle: RePEc:taf:tcpoxx:v:10:y:2010:i:4:p:369-384
    DOI: 10.3763/cpol.2009.0034
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    1. Bruno S. Frey, 1997. "Not Just for the Money," Books, Edward Elgar Publishing, number 1183.
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    1. Marek, Ewelina & Raux, Charles & Engelmann, Dirk, 2018. "Personal carbon allowances: Can a budget label do the trick?," Transport Policy, Elsevier, vol. 69(C), pages 170-178.
    2. Nie, Qingyun & Zhang, Lihui & Li, Songrui, 2022. "How can personal carbon trading be applied in electric vehicle subsidies? A Stackelberg game method in private vehicles," Applied Energy, Elsevier, vol. 313(C).
    3. Spash, Clive L. & Theine, Hendrik, 2016. "Voluntary Individual Carbon Trading," SRE-Discussion Papers 2016/04, WU Vienna University of Economics and Business.
      • Clive L. Spash & Hendrik Theine, 2016. "Voluntary Individual Carbon Trading," SRE-Disc sre-disc-2016_04, Institute for Multilevel Governance and Development, Department of Socioeconomics, Vienna University of Economics and Business.
    4. Andersson, David & Löfgren, Åsa & Widerberg, Anna, 2011. "Attitudes to Personal Carbon Allowances," Working Papers in Economics 505, University of Gothenburg, Department of Economics.
    5. Dogterom, Nico & Ettema, Dick & Dijst, Martin, 2018. "Behavioural effects of a tradable driving credit scheme: Results of an online stated adaptation experiment in the Netherlands," Transportation Research Part A: Policy and Practice, Elsevier, vol. 107(C), pages 52-64.
    6. Aysegul Kanay & Denis Hilton & Laetitia Charalambides & Jean-Baptiste Corrégé & Eva Inaudi & Laurent Waroquier & Stéphane Cézéra, 2021. "Making the carbon basket count: Goal setting promotes sustainable consumption in a simulated online supermarket," Post-Print hal-03403040, HAL.
    7. Alberto M. Zanni & Abigail L. Bristow & Mark Wardman, 2013. "The potential behavioural effect of personal carbon trading: results from an experimental survey," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 2(2), pages 222-243, July.
    8. Dogterom, Nico & Ettema, Dick & Dijst, Martin, 2018. "Activity-travel adaptations in response to a tradable driving credits scheme," Transport Policy, Elsevier, vol. 72(C), pages 79-88.
    9. Fabio Bothner, 2021. "Personal Carbon Trading—Lost in the Policy Primeval Soup?," Sustainability, MDPI, vol. 13(8), pages 1-16, April.
    10. Howell, Rachel A., 2012. "Living with a carbon allowance: The experiences of Carbon Rationing Action Groups and implications for policy," Energy Policy, Elsevier, vol. 41(C), pages 250-258.
    11. Yong Liu, 2019. "Residents’ Willingness and Influencing Factors on Action Personal Carbon Trading: A Case Study of Metropolitan Areas in Tianjin, China," Sustainability, MDPI, vol. 11(2), pages 1-13, January.
    12. Tan, Xueping & Wang, Xinyu & Zaidi, Syed Haider Ali, 2019. "What drives public willingness to participate in the voluntary personal carbon-trading scheme? A case study of Guangzhou Pilot, China," Ecological Economics, Elsevier, vol. 165(C), pages 1-1.
    13. H. M. Abdul Aziz & Satish V. Ukkusuri & Xianyuan Zhan, 2017. "Determining the Impact of Personal Mobility Carbon Allowance Schemes in Transportation Networks," Networks and Spatial Economics, Springer, vol. 17(2), pages 505-545, June.

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