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Environmental and Resource Economics

, Volume 67, Issue 3, pp 429–454 | Cite as

The Influence of Collective Action on the Demand for Voluntary Climate Change Mitigation in Hypothetical and Real Situations

  • Reinhard UehlekeEmail author
  • Bodo Sturm
Article

Abstract

In this experiment, we investigate 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 \(\hbox {CO}_{2}\) that will be deleted after the completion of the experiment. Decisions were implemented either as purely individual or as a collective action using majority voting. 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. Collective decision making affects demand positively in the hypothetical decision situation only and we observe a significant hypothetical bias in the demand for voluntary climate change mitigation.

Keywords

Demand for voluntary climate change mitigation Public goods Collective action Hypothetical bias 

JEL Classification

Q51 Q54 C93 

Notes

Acknowledgments

Financial support by the German Federal Ministry of Education and Research (FairPayClim FKZ 01LA1108B) is gratefully acknowledged. We thank workshop participants at the ZEW Mannheim, Carlo Gallier and two anonymous referees for valuable comments.

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Copyright information

© Springer Science+Business Media Dordrecht 2016

Authors and Affiliations

  1. 1.Faculty of Business AdministrationLeipzig University of Applied Science (HTWK)LeipzigGermany
  2. 2.Department of Agricultural EconomicsUniversity of RostockRostockGermany

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