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The Influence of Collective Action on the Demand for Voluntary Climate Change Mitigation in Hypothetical and Real Situations

Reinhard Uehleke () and Bodo Sturm
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Reinhard Uehleke: Leipzig University of Applied Science (HTWK)
Bodo Sturm: Leipzig University of Applied Science (HTWK)

Environmental & Resource Economics, 2017, vol. 67, issue 3, 429-454

Abstract: Abstract In this experiment, we investigate 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 $$\hbox {CO}_{2}$$ CO 2 that will be deleted after the completion of the experiment. Decisions were implemented either as purely individual or as a collective action using majority voting. 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. Collective decision making affects demand positively in the hypothetical decision situation only and we observe a significant hypothetical bias in the demand for voluntary climate change mitigation.

Keywords: Demand for voluntary climate change mitigation; Public goods; Collective action; Hypothetical bias (search for similar items in EconPapers)
JEL-codes: Q51 Q54 C93 (search for similar items in EconPapers)
Date: 2017
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