Effects of personal carbon allowances on decision-making: evidence from an experimental simulation

Stuart Bryce Capstick and Alan Lewis

Climate Policy, 2010, vol. 10, issue 4, 369-384

Abstract: Behavioural influences of personal carbon trading (PCT) beyond those anticipated by pure price effects have been a theoretically attractive, yet empirically elusive, feature of such schemes. Computer-based simulation is used to examine the effects of participants' decisions on their personal carbon allocations within a PCT context. Evidence is presented about participants' tendencies to make more energy-conserving decisions as a consequence of attending to a restrictive and diminishing carbon allowance-independent of other financial and carbon cost information provided-suggesting that a form of 'carbon budgeting' is occurring. Further measurements indicate that the extent of carbon reduction achieved within the simulated PCT framework varies according to pro-environmental attitudes. Evidence is also presented that the size of participants' footprints correlates inversely with support for PCT; and that proenvironmental attitudes correlate positively with support for PCT. The advantages and drawbacks of using simulations for examining behavioural responses to PCT are discussed.

Date: 2010
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DOI: 10.3763/cpol.2009.0034

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