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The effects of social norm sensitivity in a PES mechanism

Author

Listed:
  • Botao Qin

    (Xi'an Jiaotong University)

  • Jason F Shogren

    (University of Wyoming)

  • Thorsten Janus

    (University of Wyoming)

Abstract

In this paper, we study the effects of heterogeneous sensitivities to social norms when an environmental regulator designs a mechanism for land retirement. We show that when the social norm exceeds the personal norm, as expected, landowners who are relatively sensitive to social norms (``conformists") retire more land. However, when the social norm is below the personal norm, landowners who are more sensitive to personal norms (``individualists") conserve more. Endogenizing the social norm shows that the efficient provider might not supply the efficient quantity of land retirement.

Suggested Citation

  • Botao Qin & Jason F Shogren & Thorsten Janus, 2025. "The effects of social norm sensitivity in a PES mechanism," Economics Bulletin, AccessEcon, vol. 45(2), pages 792-800.
    • Handle: RePEc:ebl:ecbull:eb-24-00351
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    References listed on IDEAS

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    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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