Offset carbon emissions or pay a price premium for avoiding them? A cross-country analysis of motives for climate protection activities

Claudia Schwirplies () and Andreas Ziegler ()
Additional contact information
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 contributes to the economic literature on pure and impure public goods by consid-ering two alternatives for contributing to the public good climate protection: compensating carbon emissions from conventional consumption or paying higher prices for climate-friendly products. We analytically and empirically examine a wide range of motives and their impact on individuals’ choice in favor of these two alternatives. Relying on data from representative surveys among more than 2000 participants from Germany and the USA, our results indicate that environmental awareness, warm glow motives, and the desire to set a good example sig-nificantly motivate the choice of both climate protection activities in both countries. However, some motives differ considerably between both alternatives and countries. A green identity enhances the willingness to pay a price premium for climate-friendly goods or services in Germany, while social norms seem to be of much higher relevance in the USA. Our results further suggest that the choice of climate protection activities, especially of carbon offsetting, entails a high degree of uncertainty.

Keywords: Public good; climate change; climate protection; carbon offsetting; price premium (search for similar items in EconPapers)
JEL-codes: H41 Q54 Q58 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2015
New Economics Papers: this item is included in nep-agr, nep-ene, nep-env, nep-reg and nep-res
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Forthcoming in

Downloads: (external link)
http://www.uni-marburg.de/fb02/makro/forschung/mag ... 2015_schwirplies.pdf First 201504 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mar:magkse:201504

Access Statistics for this paper

More papers in MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) Contact information at EDIRC.
Bibliographic data for series maintained by Bernd Hayo ().