Consumer support for environmental policies: An application to purchases of green cars
AbstractThis paper focuses on how consumer motivation can be tapped in order to encourage the adoption of cleaner technologies. Consumers are heterogeneous they may be guided by intrinsic motivation or extrinsic motivation. While information provision policies (such as the energy label for cars) may be effective in encouraging certain consumers to adopt green cars, financial incentive schemes (such as subsidies or fines) may be more persuasive for extrinsically-motivated consumers. We develop a dynamic theory of adoption of environmental innovations, in which information-provision policies are followed by financial incentives (first 'carrot', then 'stick' incentives). Analysis of a survey dataset of Swiss households observes considerable heterogeneity in terms of support of information- provision or financial incentive policies, in line with our conjectures. Our results will be of particular interest to policymakers interested in guiding consumers towards cleaner technologies.
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Bibliographic InfoPaper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2008-035.
Date of creation: 06 May 2008
Date of revision:
Environmental policy; Technology adoption; Technology diffusion; Intrinsic motivation; Financial incentives.;
Other versions of this item:
- Coad, Alex & de Haan, Peter & Woersdorfer, Julia Sophie, 2009. "Consumer support for environmental policies: An application to purchases of green cars," Ecological Economics, Elsevier, vol. 68(7), pages 2078-2086, May.
- Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
- Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-05-31 (All new papers)
- NEP-ENE-2008-05-31 (Energy Economics)
- NEP-ENV-2008-05-31 (Environmental Economics)
- NEP-MKT-2008-05-31 (Marketing)
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