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Applied Economics
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Applied Economics
Article . 2015 . Peer-reviewed
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Offset carbon emissions or pay a price premium for avoiding them? A cross-country analysis of motives for climate protection activities

Authors: Schwirplies, Claudia; Ziegler, Andreas;

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

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.

Country
Germany
Subjects by Vocabulary

Microsoft Academic Graph classification: Macroeconomics Offset (computer science) Climate change Price premium Willingness to pay Economics Relevance (law) Consumption (economics) Public economics Public good Greenhouse gas

JEL Classification: jel:H41 jel:Q54 jel:Q58

Dewey Decimal Classification: ddc:330

Keywords

Public good; climate change; climate protection; carbon offsetting; price premium, Economics and Econometrics, Public good ; climate protection ; carbon offsetting ; climate change ; price premium, Economics, climate protection, Public good, carbon offsetting, price premium, Wirtschaft, climate change

32 references, page 1 of 4

Akter, S.; Brouwer, R.; Brander, L.; van Beukering, P. (2009): Respondent uncertainty in a contingent market for carbon offsets, Ecological Economics 68 (6), 1858-1863.

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Araghi, Y.; Kroesen, M.; Molin, E.; van Wee, B. (2014): Do social norms regarding carbon offsetting affect individual preferences towards this policy? Results from a stated choice experiment, Transportation Research Part D: Transport and Environment 26 (0), 42-46.

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Brouwer, R.; Brander, L.; Beukering, P. (2008): “A convenient truth”: Air travel passengers' willingness to pay to offset their CO2 emissions, Climatic Change 90 (3), 299-313. [OpenAIRE]

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  • citations
    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    46
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Top 10%
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Top 10%
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citations
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
46
Top 10%
Top 10%
Top 10%
bronze