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Nudging Green Preferences: Evidence from a Laboratory Experiment

Author

Listed:
  • Yudistira Hendra Permana

    (Department of Economics and Business, Vocational College, Universitas Gadjah Mada, Indonesia)

  • Muhammad Ryan Sanjaya

    (��Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada, Indonesia)

Abstract

Environmental degradation has been one of the major global concerns in the last few decades. Efforts are made to improve our environment including how to alter consumers’ preferences toward the use of environmental-friendly products. We conduct an online laboratory experiment to investigate the effectiveness of information and nudges regarding green products using social (cultural) identity-specific campaigns. Our study shows that information and green nudges are unable to alter subjects’ risk aversion and time preference. However, green nudges are effective to motivate subjects to allocate more to green product and that differs the effectiveness between information and green nudges in our context. Lastly, we find that some green perceptions are associated with subjects’ willingness to pay for green products and characteristics. We conclude with a discussion of how to effectively deliver nudges in promoting green consumption.

Suggested Citation

  • Yudistira Hendra Permana & Muhammad Ryan Sanjaya, 2022. "Nudging Green Preferences: Evidence from a Laboratory Experiment," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 13(02), pages 1-40, June.
    • Handle: RePEc:wsi:jicepx:v:13:y:2022:i:02:n:s1793993322500119
    DOI: 10.1142/S1793993322500119
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    More about this item

    Keywords

    Green nudges; willingness to pay; online laboratory experiment; social identity;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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