Is Regulation by Milestones Efficiency Enhancing? - An Experimental Study of Environmental Protection -
AbstractViewing individual contributions as investments in emission reduction we rely on the familiar linear public goods- game to set global reduction targets which, if missed, imply that all payoffs are destroyed with a certain probability. Regulation by milestones does not only impose a final reduction target but also intermediate ones. In our leading example the regulating agency is Mother Nature but our analysis can, of course, be applied to other regulating agencies as well. We are mainly testing for milestone effects by varying the size of milestones in addition to changing the marginal productivity of individual contributions and the probability to lose.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2010-086.
Date of creation: 02 Dec 2010
Date of revision:
Cumulative Public Goods; Milestones; Climate Change; Experiment.;
Find related papers by JEL classification:
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-12-11 (All new papers)
- NEP-CBE-2010-12-11 (Cognitive & Behavioural Economics)
- NEP-ENE-2010-12-11 (Energy Economics)
- NEP-ENV-2010-12-11 (Environmental Economics)
- NEP-EXP-2010-12-11 (Experimental Economics)
- NEP-REG-2010-12-11 (Regulation)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Urs Fischbacher & Werner Güth & M. Vittoria Levati, 2011.
"Crossing the Point of No Return: A Public Goods Experiment,"
Jena Economic Research Papers
2011-059, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Urs Fischbacher & Werner GŸth & M. Vittoria Levati, 2011. "Crossing the Point of No Return: A Public Goods Experiment," TWI Research Paper Series 72, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Markus Pasche).
If references are entirely missing, you can add them using this form.