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Co-benefits motivate individual donations to mitigate climate change

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  • Feldhaus, Christoph
  • Gleue, Marvin
  • Löschel, Andreas
  • Werner, Peter

    (RS: GSBE Theme Human Decisions and Policy Design, Microeconomics & Public Economics)

Abstract

We study the role of co-benefits – positive effects of climate protection projects in addition to CO2 reduction – for the motivation to contribute to climate change mitigation. In two artefactual field experiments conducted with large population samples from Germany (n = 2,400 in total), we test if and how the existence and specific nature of co-benefits affect donations. In both experiments, we find that co-benefits have a positive impact on contributions to climate protection. Our second experiment shows that contributions also respond to the nature of co-benefits, and these responses seem to be driven by individual donor preferences for the respective type of co-benefit. Moreover, we observe that making carbon footprints and thus individual responsibility for environmental externalities more salient increases donations irrespective of the existence and nature of co-benefits. Finally, when uncertainty about co-benefits is introduced, the majority of potential donors requests information in both experiments, and those who choose to be informed about co-benefits provide higher donations relative to subjects who choose not to be informed.

Suggested Citation

  • Feldhaus, Christoph & Gleue, Marvin & Löschel, Andreas & Werner, Peter, 2022. "Co-benefits motivate individual donations to mitigate climate change," Research Memorandum 004, Maastricht University, Graduate School of Business and Economics (GSBE).
  • Handle: RePEc:unm:umagsb:2022004
    DOI: 10.26481/umagsb.2022004
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    More about this item

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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