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The influence of collective action on the demand for voluntary climate change mitigation in hypothetical and real situations

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  • Sturm, Bodo
  • Uehleke, Reinhard

Abstract

In this experiment, we investigate determinants of the individual demand for voluntary climate change mitigation. Subjects decide between a cash prize and an allowance from the EU Emissions Trading Scheme for one ton of CO2 that will be deleted afterwards. We vary the incentives of the decision situation in which we distinguish between real monetary incentives and a hypothetical decision situation with and without a cheap talk script. Furthermore, decisions were implemented either as purely individual or as a collective action using majority voting. We observe a significant hypothetical bias in the demand for voluntary climate change mitigation. In case of the individual decision situation this bias is caused solely by subjects with low income. Collective decision making affects demand positively in the hypothetical decision situation only.

Suggested Citation

  • Sturm, Bodo & Uehleke, Reinhard, 2015. "The influence of collective action on the demand for voluntary climate change mitigation in hypothetical and real situations," ZEW Discussion Papers 15-045, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:15045
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    File URL: https://www.econstor.eu/bitstream/10419/112757/1/832553689.pdf
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    Cited by:

    1. Uehleke, Reinhard & Hüttel, Silke, 2016. "The Hypothetical Free-Rider Deficit In The Demand For Farm Animal Welfare Labeled Meat," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244866, German Association of Agricultural Economists (GEWISOLA).

    More about this item

    Keywords

    demand for voluntary climate change mitigation; public goods; collective action; hypothetical bias;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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