Consumer support for environmental policies: An application to purchases of green cars
AbstractThis paper focuses on how consumer motivation can be tapped in order to encourage the adoption of cleaner technologies. Consumers are heterogeneous -- they may be guided by intrinsic motivation or extrinsic motivation. While information provision policies (such as the energy label for cars) may be effective in encouraging certain consumers to adopt green cars, financial incentive schemes (such as subsidies or fines) may be more persuasive for extrinsically-motivated consumers. We develop a dynamic theory of adoption of environmental innovations, in which information-provision policies are followed by financial incentives (first 'carrot', then 'stick' incentives). Analysis of a survey dataset of Swiss households observes considerable heterogeneity in terms of support of information-provision or financial incentive policies, in line with our conjectures. Our results will be of particular interest to policymakers interested in guiding consumers towards cleaner technologies.
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Bibliographic InfoArticle provided by Elsevier in its journal Ecological Economics.
Volume (Year): 68 (2009)
Issue (Month): 7 (May)
Contact details of provider:
Web page: http://www.elsevier.com/locate/ecolecon
Environmental policy Technology adoption Technology diffusion Intrinsic motivation Financial incentives;
Other versions of this item:
- Alex Coad & Peter de Haan & Julia Sophie Woersdorfer, 2008. "Consumer support for environmental policies: An application to purchases of green cars," Jena Economic Research Papers 2008-035, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
- Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
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