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Does Mitigation Begin At Home?

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  • Diederich, Johannes
  • Goeschl, Timo

Abstract

In a climate system that is indifferent about where mitigation is carried out, the logic of comparative advantages favors abatement locations in developing and rapidly industrializing countries. There is evidence, however, that citizens of industrialized countries who voluntarily fund climate mitigation activities are not indifferent about the mitigation location. In our artifactual online experiment, subjects located in a European Union member state took a dichotomous choice between a cash prize and the verified mitigation of one metric ton of CO2. The treatment condition varied the location of the mitigation activity between the European Union and developing countries. We test whether the location impacts on the probability that the mitigation activity is chosen, harnessing between- and within-subject Variation in our panel data. Our evidence shows that subjects responded to the location being made salient, but, contrary to previous concerns, were indifferent between mitigation sites in the EU or developing countries.

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  • Diederich, Johannes & Goeschl, Timo, 2017. "Does Mitigation Begin At Home?," Working Papers 0634, University of Heidelberg, Department of Economics.
  • Handle: RePEc:awi:wpaper:0634
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    2. Lea S. Svenningsen, 2019. "Social preferences for distributive outcomes of climate policy," Climatic Change, Springer, vol. 157(2), pages 319-336, November.
    3. Lea S. Svenningsen & Bo Jellesmark Thorsen, 2020. "Preferences for Distributional Impacts of Climate Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(1), pages 1-24, January.
    4. Baranzini, Andrea & Borzykowski, Nicolas & Carattini, Stefano, 2018. "Carbon offsets out of the woods? Acceptability of domestic vs. international reforestation programmes in the lab," Journal of Forest Economics, Elsevier, vol. 32(C), pages 1-12.
    5. Lea Skræp Svenningsen, 2017. "Distributive outcomes matter: Measuring social preferences for climate policy," IFRO Working Paper 2017/11, University of Copenhagen, Department of Food and Resource Economics.
    6. Heyen, Daniel & Horton, Joshua & Moreno-Cruz, Juan, 2019. "Strategic implications of counter-geoengineering: Clash or cooperation?," Journal of Environmental Economics and Management, Elsevier, vol. 95(C), pages 153-177.

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