Nudge and tax in an environmental public goods experiment: Does environmental sensitivity matter?

My, Kene Boun and Ouvrard, Benjamin (2019) Nudge and tax in an environmental public goods experiment: Does environmental sensitivity matter? Resource and Energy Economics, 55. pp. 24-48.

[img] Text
Download (56kB)
Official URL: https://www.sciencedirect.com/science/article/pii/...

Abstract

An experiment is proposed in which the subjects could contribute to a public good which could be thought of as reducing pollution, which was stochastic. A nudge (announcement of the socially optimal contribution) and a tax are implemented to improve the level of contributions. The environmental sensitivity and optimism of the subjects are also elicited. Our first result shows that the implementation of the nudge does not perform as well as the implementation of the tax. The reaction to the nudge depends directly on individuals’ environmental sensitivity, contrary to the reaction to the tax. Secondly, the nudge performs well with highly sensitive subjects only during the first half of its implementation. Lastly, the efficiency analysis shows that the implementation of the nudge significantly decreases the groups’ welfare for the least sensitive subjects, in comparison to the baseline.

Item Type: Article
Language: English
Date: February 2019
Refereed: Yes
Uncontrolled Keywords: Environmental sensitivity, Incentives, Nudge, Optimism, Tax
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 19 Jul 2019 14:01
Last Modified: 19 Jul 2019 14:01
OAI ID: oai:tse-fr.eu:123185
URI: http://publications.ut-capitole.fr/id/eprint/32634

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year