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Effect of competition on proenvironmental behaviour: An experimental approach

May Attallah and Anne Stenger ()
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Anne Stenger: BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

Authors registered in the RePEc Author Service: Jens Abildtrup

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Abstract: We conducted a contextualized lab experiment to determine whether competition between wood buyers affects pro-environmental behaviour, which is, the adoption of new sustainable biomass harvesting practices. We also test the effect of a non-monetary incentive, that is signing a declaration that commits wood buyers who voluntarily sign it to act in a sustainable manner. Our results provide evidence that when there is competition between wood buyers, presenting a declaration to sign is effective in inducing them to act in a sustainable manner when personal and collective interests are not aligned and there are financial incentives to make decisions that are against environmental sustainability. However, presenting a declaration to sign does not have a significant effect on pro-environmental behaviour when wood buyers are monopolist. Presenting a declaration tend to correct unsustainable behaviour that emerges from competition.

Keywords: Forest; Timber harvest; Laboratory experiment; Non-monetary incentives; Commitment; Competition (search for similar items in EconPapers)
Date: 2023-06-01
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Published in 2023. African meeting of the Econometric Society (AFES 2023), The African Economic Research Consortium, Jun 2023, Nairobi, Kenya

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04153267

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