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Green consumers and public policy: On socially contingent moral motivation

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  • 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,)

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File URL: http://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2003/Memo-31-2003.pdf
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Bibliographic 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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Keywords: Moral motivation; multiple Nash equilibria; green taxes;

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