The Private Provision of Public Goods: Tests of a Provision Point Mechanism for Funding Green Power Programs
AbstractThis 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 InfoPaper provided by Cornell University, Department of Applied Economics and Management in its series Working Papers with number 127699.
Date of creation: Oct 1999
Date of revision:
public goods; provision point; green pricing; renewable energy; experiments; free riding; altruism.; Public Economics; Resource /Energy Economics and Policy; H41 Public Goods; C92 Design of Experiments; Laboratory; Group Behavior; C93 Design of Experiments; Field Experiments;
Other versions of this item:
- Rose, Steven K. & Clark, Jeremy & Poe, Gregory L. & Rondeau, Daniel & Schulze, William D., 2002. "The private provision of public goods: tests of a provision point mechanism for funding green power programs," Resource and Energy Economics, Elsevier, vol. 24(1-2), pages 131-155, February.
- Rose, Steven K. & Poe, Gregory L. & Rondeau, Daniel & Schulze, William D. & Clark, Jeremy, 1997. "The Private Provision of Public Goods: Tests of a Provision Point Mechanism for Funding Green Power Programs," Working Papers 127850, Cornell University, Department of Applied Economics and Management.
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- Pub - Economic Systems - - - - -
- Goo - Financial Economics - - - - -
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
- Des - Microeconomics - - - - -
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