Environmental stressors such as noise, pollution, extreme temperatures, or crowding can pose relevant externalities in the economy if certain conditions are met. This paper presents experimental evidence that exposure to acute ambient noise decreases cooperative behavior in a standard linear public good game.
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The private provision of public goods (PPPG) is still one of the most fascinating puzzles in economics. Underpredicted by standard economic theory but outrightly evident in empirical evidence, its presence opened doors for new methods to enter the economist's toolkit and helped birthing the nowadays more vibrant than ever field of behavioral economics. Variants of the question of what determines giving in PPPG make up, for the most part, the research questions of the five articles that constitute this dissertation. Residing on the overlap of public economics, environmental economics, and behavioral/experimental economics, it reports on two field-experimental and one lab-experimental projects, delivering results with respect to, for example, the price elasticity of giving to public goods, the willingness to pay for a voluntary one-ton emissions reduction, the pronounced effect of education on PPPG, the "pure" effect of group size in public good provision, and the effects of ambient noise and outdoor temperature on PPPG.
Disentangling the motivational drivers of individuals is frequently regarded a key step in reconciling theory and empirical evidence on the voluntary provision of public goods. We present results of a large online field experiments with 12,624 contribution choices by members of the Internet-using German population. Subjects are assigned to six treatments targeted at motivations such as altruism, "warm glow", image motivation, or equity concerns. While evidence on treatment effects is mixed, the data point to signicant effects of framing and the sequence of presenting options. Exploiting variations within the highly heterogeneous sample, the results confirm previous results from a subset of the data on sociodemographics and exogenous environmental conditions as determinants of subjects' choices and add additional evidence that females and older subjects are more inclined to give to the public good.
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In the climate policy debate, a rhetoric has evolved that attributes a high potential to "voluntary climate action". We turn to the population of Germany, the fourth largest cumulative GHG emitter, to obtain an Internet-)representative estimate of the individual willingness to abate one ton of CO2, the equivalent of 10 percent of annual per-capita CO2 emissions. The estimate derives from a large-scale (n=2,440) framed field experiment in which subjects choose between a guaranteed reduction of one ton of EU CO2 emissions and a randomly drawn cash award between €2 and €100. At €6.30, estimated mean WTP is considerably lower than prior hypothetical or non-representative estimates. Median WTP is non-positive. The almost bimodal nature of WTP in the population has important policy implications.
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We conduct a large-scale field experiment with 2,440 subjects in which we exogenously vary the price of contributing to the closest empirical counterpart of an infinitely large public good, climate change mitigation. We find that the price effect is robust and negative, but quantitatively weak, with a price elasticity of -0.25. Socioeconomic variables such as education, situational variables such as meteorological conditions around the time of the experiment, and attitudinal variables that can be linked to guilt and moral responsibility dominate the price effect. The latter also explain better than price arbitrage the decision of subjects to declare to be field price censored. The results provide an experimental window on the absolute and relative role of price effects on public goods contributions in a large economy and inform current attempts to build a coherent theory of charitable giving.
In a climate system that is indifferent about where mitigation is carried out, the logic of comparative advantages favors abatement locations in developing and rapidly industrializing countries. There is evidence, however, that citizens of industrialized countries who voluntarily fund climate mitigation activities are not indifferent about the mitigation location. In our artifactual online experiment, subjects located in a European Union member state took a dichotomous choice between a cash prize and the verified mitigation of one metric ton of CO2. The treatment condition varied the location of the mitigation activity between the European Union and developing countries. We test whether the location impacts on the probability that the mitigation activity is chosen, harnessing between- and within-subject Variation in our panel data. Our evidence shows that subjects responded to the location being made salient, but, contrary to previous concerns, were indifferent between mitigation sites in the EU or developing countries.
In a climate system that is indifferent about where mitigation is carried out, the logic of comparative advantages favors abatement locations in developing and rapidly industrializing countries. There is evidence, however, that citizens of industrialized countries who voluntarily fund climate mitigation activities are not indifferent about the mitigation location. In our artifactual online experiment, subjects located in a European Union member state took a dichotomous choice between a cash prize and the verified mitigation of one metric ton of CO2. The treatment condition varied the location of the mitigation activity between the European Union and developing countries. We test whether the location impacts on the probability that the mitigation activity is chosen, harnessing between- and within-subject Variation in our panel data. Our evidence shows that subjects responded to the location being made salient, but, contrary to previous concerns, were indifferent between mitigation sites in the EU or developing countries.
In the climate policy debate, a rhetoric has evolved that attributes a high potential to "voluntary climate action". We turn to the population of Germany, the fourth largest cumulative GHG emitter, to obtain an Internet-)representative estimate of the individual willingness to abate one ton of CO2, the equivalent of 10 percent of annual per-capita CO2 emissions. The estimate derives from a large-scale (n=2,440) framed field experiment in which subjects choose between a guaranteed reduction of one ton of EU CO2 emissions and a randomly drawn cash award between €2 and €100. At €6.30, estimated mean WTP is considerably lower than prior hypothetical or non-representative estimates. Median WTP is non-positive. The almost bimodal nature of WTP in the population has important policy implications.
In the climate policy debate, a rhetoric has evolved that attributes a high potential to "voluntary climate action". We turn to the population of Germany, the fourth largest cumulative GHG emitter, to obtain an Internet-)representative estimate of the individual willingness to abate one ton of CO2, the equivalent of 10 percent of annual per-capita CO2 emissions. The estimate derives from a large-scale (n=2,440) framed field experiment in which subjects choose between a guaranteed reduction of one ton of EU CO2 emissions and a randomly drawn cash award between €2 and €100. At €6.30, estimated mean WTP is considerably lower than prior hypothetical or non-representative estimates. Median WTP is non-positive. The almost bimodal nature of WTP in the population has important policy implications.
Recent experimental research has examined whether contributions to public goods can be traced back to intuitive or deliberative decision-making, using response times in public good games in order to identify the specific decision process at work. In light of conflicting results, this paper reports on an analysis of response time data from an online experiment in which over 3400 subjects from the general population decided whether to contribute to a real world public good. The between-subjects evidence confirms a strong positive link between contributing and deliberation and between free-riding and intuition. The average response time of contributors is 40 percent higher than that of free-riders. A within-subject analysis reveals that for a given individual, contributing significantly increases and free-riding significantly decreases the amount of deliberation required.
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