Can Defaults Save the Climate? Evidence from a Field Experiment on Carbon Offsetting Programs

Arana, J.E. and Leon, C.J. (2012) Can Defaults Save the Climate? Evidence from a Field Experiment on Carbon Offsetting Programs. Environmental and Resource Economics . pp. 1-14.

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Individual preferences for environmental policies can be influenced by the frame in which choices and decisions are presented. In this paper we present results of a field experiment on the contributions to carbon offsetting programs under two alternative treatments for the default option. The opt-in treatment asked subjects to pay for the policy proposal while the opt-out treatment asked subjects if they wanted to be excluded from payment for the policy proposal. The results show that the frame of the default option had a significant effect on the amount of money paid for the policy proposal. Subjects were more likely to accept the policy proposal if the default option was the opt-out treatment. The results have implications for the design of environmental policies.

Item Type: Article
Uncontrolled Keywords: Carbon offsetting · Defaults · Environmental policy · Field experiments · Framing
Author Affiliation: Universidad de Las Palmas de Gran Canaria, Edificio de Economicas, Modulo D.3.13, Las Palmas de Gran Canaria, 35017, Las Palmas, Spain , University of Technology, Sydney,, Australia
Subjects: Atmosperic Science > Climatology
Statistics and Experimentation > Experimentation
Divisions: General
Depositing User: Mr. SanatKumar Behera
Date Deposited: 22 Nov 2012 04:10
Last Modified: 22 Nov 2012 04:10
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