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The effect of incentives on sustainable behavior: evidence from a field experiment

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  • Huber, Laura Rosendahl
  • Sloof, Randolph
  • Van Praag, Mirjam

Abstract

This study investigates how children respond to different treatments aimed to foster sustainable behavior in a productive (firm like) setting. We conduct a field experiment using teams of children (aged 11 or 12) that are participating in an entrepreneurship education program in the last grade of primary school in the Netherlands. Schools participating in this program are randomly assigned to one of three treatments: the first is purely financially oriented, the second promotes sustainable behavior and the third also induces sustainability by (monetary) incentives. Comparing the first two groups we find that solely promoting sustainability does not lead to a change in sustainable behavior. However, once the monetary reward is linked to sustainable outcome measures, we find a significant positive effect on sustainable behavior. In our specific setting, the choice to behave more sustainable comes at the cost of weaker financial performance of the team.

Suggested Citation

  • Huber, Laura Rosendahl & Sloof, Randolph & Van Praag, Mirjam, 2017. "The effect of incentives on sustainable behavior: evidence from a field experiment," Labour Economics, Elsevier, vol. 45(C), pages 92-106.
    • Handle: RePEc:eee:labeco:v:45:y:2017:i:c:p:92-106
    DOI: 10.1016/j.labeco.2016.11.012
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    More about this item

    Keywords

    Incentives; Sustainability; Education; Sustainable behavior; Field experiment;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • I29 - Health, Education, and Welfare - - Education - - - Other
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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