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The Effectiveness of Carbon Labels

Author

Listed:
  • Arthur Seibold
  • Sebastian Seitz
  • Sebastian Siegloch

Abstract

Public disability insurance (DI) programs in many countries are under pressure to reduce spending to maintain fiscal sustainability. In this paper, we investigate the welfare effects of expanding the role of private insurance markets in the face of public DI cuts. We exploit a reform that abolished one part of German public DI and use unique data from a larger insurer. We document modest crowding-out effects of the reform, such that private DI take-up remains incomplete. We find no adverse selection in the private DI market. Instead, private DI tends to attract individuals with high income, high education, and low disability risk. Using a revealed preference approach, we estimate individual insurance valuations. Our welfare analysis finds that partial DI provision via the voluntary private market can improve welfare. However, distributional concerns may justify a full public DI mandate.

Suggested Citation

  • Arthur Seibold & Sebastian Seitz & Sebastian Siegloch, 2025. "The Effectiveness of Carbon Labels," CRC TR 224 Discussion Paper Series crctr224_2025_640, University of Bonn and University of Mannheim, Germany.
    • Handle: RePEc:bon:boncrc:crctr224_2025_640
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    File URL: https://www.crctr224.de/research/discussion-papers/archive/dp640
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    More about this item

    Keywords

    disability insurance; social insurance; mandate; privatization; risk-based selection; welfare;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G52 - Financial Economics - - Household Finance - - - Insurance

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