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Uncertainty about Carbon Impact and the Willingness to Avoid CO2 Emissions

Author

Listed:
  • Davide Pace

    (LMU Munich)

  • Taisuke Imai

    (Osaka University)

  • Peter Schwardmann

    (Carnegie Mellon University)

  • Joel van der Weele

    (Tinbergen Institute)

Abstract

With a large representative survey (N=1,128), we document that consumers are very uncertain about the emissions associated with various actions, which may affect their willingness to reduce their carbon footprint. We experimentally test two channels for the behavioural impact of such uncertainty, namely risk aversion about the impact of mitigating actions and the formation of motivated beliefs about this impact. In two large online experiments (N=2,219), participants make incentivized trade-offs between personal gain and (uncertain) carbon impact. We find no evidence that uncertainty affects individual climate change mitigation efforts through risk aversion or motivated belief channels. The results suggest that reducing consumer uncertainty through information campaigns is not a policy panacea and that communicating scientific uncertainty around climate impact need not backfire.

Suggested Citation

  • Davide Pace & Taisuke Imai & Peter Schwardmann & Joel van der Weele, 2023. "Uncertainty about Carbon Impact and the Willingness to Avoid CO2 Emissions," Rationality and Competition Discussion Paper Series 470, CRC TRR 190 Rationality and Competition.
  • Handle: RePEc:rco:dpaper:470
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    References listed on IDEAS

    as
    1. Rodemeier, Matthias, 2023. "Willingness to Pay for Carbon Mitigation: Field Evidence from the Market for Carbon Offsets," IZA Discussion Papers 15939, Institute of Labor Economics (IZA).
    2. Benjamin Enke & Thomas Graeber, 2023. "Cognitive Uncertainty," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 138(4), pages 2021-2067.
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