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Do monetary and non-monetary incentives influence environmental attitudes and behavior? Evidence from an experimental analysis

Author

Listed:
  • Darshana Rajapaksa

    (University of Sri Jayewardenepura)

  • Robert Gifford

    (UVIC - University of Victoria [Canada])

  • Benno Torgler

    (Center for Research in Economics, Management and the Arts (CREMA) - Partenaires INRAE)

  • María A. García-Valiñas

    (Universidad de Oviedo [Oviedo])

  • Wasantha Athukorala

    (University of Peradeniya)

  • Shunsuke Managi

    (Kyushu University)

  • Clevo Wilson

    (QUT - Queensland University of Technology [Brisbane])

Abstract

There is a wide array of empirical work on the use of monetary and non-monetary measures to manage residential water consumption. However, there has been little focus on exploring the ability to change human attitudes and behavior through offering consumers sustainable resource management. This research helps bridge this gap, through an experimental trial in Brisbane, Australia. Choices of different monetary and non-monetary incentives for managing water demand are offered to survey participants. A structural behavioral model is then developed to identify direct and indirect impacts of attitudes and behavior and which can be compared between separate groups drawn from the survey's participants. Our results suggest that both monetary and non-monetary incentives offered to households significantly reduce water consumption, which is especially so for those holding pro-environmental attitudes/behavior. Importantly, the impact is higher for non-monetary incentives. The results therefore provide valuable insight for the development of long-term sustainable resource management policies.

Suggested Citation

  • Darshana Rajapaksa & Robert Gifford & Benno Torgler & María A. García-Valiñas & Wasantha Athukorala & Shunsuke Managi & Clevo Wilson, 2019. "Do monetary and non-monetary incentives influence environmental attitudes and behavior? Evidence from an experimental analysis," Post-Print hal-03191523, HAL.
    • Handle: RePEc:hal:journl:hal-03191523
    DOI: 10.1016/j.resconrec.2019.05.034
    Note: View the original document on HAL open archive server: https://hal.univ-reunion.fr/hal-03191523
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    2. Roberto Balado-Naves & Marian Garcia-Valiñas & David Roibas, 2023. "Efficiency, perceived prices, and household water demand: A stochastic frontier analysis for the Spanish city of Gijón," Working Papers hal-04147781, HAL.
    3. Guang-Wen Zheng & Abu Bakkar Siddik & Mohammad Masukujjaman & Syed Shah Alam & Alvina Akter, 2020. "Perceived Environmental Responsibilities and Green Buying Behavior: The Mediating Effect of Attitude," Sustainability, MDPI, vol. 13(1), pages 1-27, December.
    4. Grilli, Gianluca & Curtis, John, 2021. "An evaluation of public initiatives to change behaviours that affect water quality," Papers WP696, Economic and Social Research Institute (ESRI).
    5. Grilli, Gianluca & Curtis, John, 2021. "Encouraging pro-environmental behaviours: A review of methods and approaches," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    6. Wang, Zhaohua & Li, Hao & Deng, Nana & Cheng, Kaiwei & Lu, Bin & Zhang, Bin & Wang, Bo, 2020. "How to effectively implement an incentive-based residential electricity demand response policy? Experience from large-scale trials and matching questionnaires," Energy Policy, Elsevier, vol. 141(C).
    7. Agarwal, Sumit & Sing, Tien Foo & Sultana, Mahanaaz, 2022. "Public media campaign and energy conservation: A natural experiment in Singapore," Energy Economics, Elsevier, vol. 114(C).
    8. Meng-Meng Geng & Ling-Yun He, 2021. "Environmental Regulation, Environmental Awareness and Environmental Governance Satisfaction," Sustainability, MDPI, vol. 13(7), pages 1-17, April.
    9. Si, Hongyun & Su, Yangyue & Wu, Guangdong & Liu, Bingsheng & Zhao, Xianbo, 2020. "Understanding bike-sharing users’ willingness to participate in repairing damaged bicycles: Evidence from China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 141(C), pages 203-220.
    10. Alt, Marius, 2021. "Committing to behave pro-environmentally: An assessment of time and regulatee-size effects on the demand for environmental regulation," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242419, Verein für Socialpolitik / German Economic Association.
    11. Hasan Fehmi Topal & Dexter V. L. Hunt & Christopher D. F. Rogers, 2021. "Sustainability Understanding and Behaviors across Urban Areas: A Case Study on Istanbul City," Sustainability, MDPI, vol. 13(14), pages 1-38, July.
    12. Wankmüller, Christian & Pulsfort, Johannes & Kunovjanek, Maximilian & Polt, Romana & Craß, Stefan & Reiner, Gerald, 2023. "Blockchain-based tokenization and its impact on plastic bottle supply chains," International Journal of Production Economics, Elsevier, vol. 257(C).
    13. Roberto Balado-Naves & Marian Garcia-Valiñas & David Roibas, 2023. "Efficiency, perceived prices, and household water demand: A stochastic frontier analysis for the Spanish city of Gijón," Efficiency Series Papers 2023/01, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).

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    Keywords

    pro-environmental behavior; environmental attitudes; water consumption;
    All these keywords.

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