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Green consumers and public policy: On socially contingent moral motivation

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Author Info
Nyborg, Karine () (Ragnar Frisch Centre for Economic Research)
Howarth, Richard B. () (Environmental Studies Program, Dartmouth College, Hanover, New Hampshire 03755, USA.)
Brekke, Kjell Arne () (Center for Development and the Environment, University of Oslo,)

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Abstract

“Green” consumers appear to accept individual responsibility for public good provision. The propensity to take such responsibility may depend on beliefs about others’ behavior, even for consumers motivated by internalized moral norms, not by social sanctions. This can produce multiple equilibria, with either high or low demand for “green” products. Permanent increases in green consumption may be achieved through permanent or temporary taxes, or through advertising that temporarily influences beliefs about others’ behavior or about external effects. If a tax is interpreted as taking responsibility away from the individual, however, taxes can reduce the influence of moral motivation.

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File URL: http://www.oekonomi.uio.no/memo/memopdf/memo3103.pdf
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Publisher Info
Paper provided by Oslo University, Department of Economics in its series Memorandum with number 31/2003.

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Length: 23 pages
Date of creation: 10 Aug 2003
Date of revision:
Publication status: Published in Resource and Energy Economics, 2006, pages 351-366.
Handle: RePEc:hhs:osloec:2003_031

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Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Phone: 22 85 51 27
Fax: 22 85 50 35
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Web page: http://www.oekonomi.uio.no/indexe.html
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Related research
Keywords: Moral motivation; multiple Nash equilibria; green taxes;

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Find related papers by JEL classification:
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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References listed on IDEAS
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Eerola, Essi & Huhtala, Anni, 2005. "Promoting Demand for Organic Food Under Preference and Income Heterogeneity," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24664, European Association of Agricultural Economists. [Downloadable!]
  2. Huhtala, Anni & Eerola, Essi, 2005. "Voting for environmental policy under income and preference heterogeneity," Discussion Papers 11863, MTT Agrifood Research Finland. [Downloadable!]
    Other versions:
  3. Lammertjan Dam & Ben J. Heijdra, 2008. "The Environmental and Macroeconomic Effects of Socially Responsible Investment," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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