On the interrelation between carbon offsetting and other voluntary climate protection activities: Theory and empirical evidence

Andreas Lange, Claudia Schwirplies and Andreas Ziegler
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Claudia Schwirplies: University of Kassel
Andreas Ziegler: University of Kassel

MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung)

Abstract: This paper provides theoretical and empirical insights on the extent to which the availability of carbon offsetting may substitute the individual use of other carbon-reducing measures. Theoretically, we demonstrate an ambiguous impact of offsetting on the use of other measures and derive conditions under which both are substitutes or complements. We then empirically test our predictions using data from representative surveys among more than 2000 citizens in Germany and the U.S. Considering seven measures that can be taken by individuals to direct-ly reduce greenhouse gas emissions, our empirical evidence is consistent with the theoretical predictions that substitution occurs particularly if individuals lay a sufficiently large weight on environmental preference or if offsetting is perceived to be relatively effective in providing the public good climate protection. Complementary effects are shown to exist for a perceived intermediate effectiveness of offsetting activities.

Keywords: On; the; interrelation; between; carbon; offsetting; and; other; voluntary; climate; protection; activities:; Theory; and; empirical; evidence (search for similar items in EconPapers)
JEL-codes: C25 Q54 Q58 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-agr, nep-env, nep-pbe and nep-res
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:mar:magkse:201447

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