The influence of collective action on the demand for voluntary climate change mitigation in hypothetical and real situations

Bodo Sturm and Reinhard Uehleke

In this experiment, we investigate determinants of the individual 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 CO2 that will be deleted afterwards. 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. Furthermore, decisions were implemented either as purely individual or as a collective action using majority voting. We observe a significant hypothetical bias in the demand for voluntary climate change mitigation. In case of the individual decision situation this bias is caused solely by subjects with low income. Collective decision making affects demand positively in the hypothetical decision situation only.

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Year of publication:	2015
Authors:	Sturm, Bodo ; Uehleke, Reinhard
Publisher:	Mannheim : ZEW
Subject:	demand for voluntary climate change mitigation \| public goods \| collective action \| hypothetical bias \| Öffentliche Güter \| Public goods \| Klimawandel \| Climate change \| Theorie \| Theory \| Klimaschutz \| Climate protection \| Zahlungsbereitschaftsanalyse \| Willingness to pay \| Selbstverpflichtung \| Voluntary agreement \| Kollektives Handeln \| Collective action \| Nachfrage \| Demand \| Experiment