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The Influence of Transparency on Investments in Climate Protecting - An Economic Experiment

Author

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  • Elmar A. Janssen

    (University of Paderborn)

Abstract

Climate change is one of the biggest problems humankind is currently facing. Therefore, there have recently been a rising number of studies which analyze the economic components of climate change. Especially experimental economics offer a promising way to circumvent the missing data problem and the lack of control in the field. The present study experimentally analyzes the influence of transparency on investments in climate protection using a collective-risk social dilemma framework. The results are as follows: There is a positive influence of transparency on investments in climate change, but it turns out to be not significant. However, the results of the present study taken together with the results of former studies using the same framework indicate that information saliency regarding climate change and climate protection have a huge promoting influence on investments in climate protection and therefore could be a part of the solution of the climate change problem.

Suggested Citation

  • Elmar A. Janssen, 2014. "The Influence of Transparency on Investments in Climate Protecting - An Economic Experiment," Working Papers Dissertations 06, Paderborn University, Faculty of Business Administration and Economics.
    • Handle: RePEc:pdn:dispap:06
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    More about this item

    Keywords

    climate change; emission reduction; public goods game; transparency; economic experiment;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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