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The private provision of public goods: tests of a provision point mechanism for funding green power programs

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  • Rose, Steven K.
  • Clark, Jeremy
  • Poe, Gregory L.
  • Rondeau, Daniel
  • Schulze, William D.

Abstract

This paper utilizes laboratory and field experiments to test the use of a provision point mechanism to finance renewable energy programs, commonly known as green pricing programs. The mechanism solicits discrete contributions towards a provision threshold using a money-back guarantee for insufficient contributions and extended benefits for contributions in excess of the threshold. In the laboratory, a single shot environment with a large group of potential participants produces contribution levels that are found to be partially demand revealing as well as motivated by altruism or wann-glow. Also, in contrast to most green pricing programs, relatively high participation is found in the field. Field participation is shown to be responsive to program goals and the provision point mechanism.

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Bibliographic Info

Article provided by Elsevier in its journal Resource and Energy Economics.

Volume (Year): 24 (2002)
Issue (Month): 1-2 (February)
Pages: 131-155

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Handle: RePEc:eee:resene:v:24:y:2002:i:1-2:p:131-155

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Web page: http://www.elsevier.com/locate/inca/505569

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