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Conditional cooperation in case of a global public good – Experimental evidence from climate change mitigation in Beijing

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  • Sturm, Bodo
  • Pei, Jiansuo
  • Wang, Ran
  • Löschel, Andreas
  • Zhao, Zhongxiu

Abstract

In this experimental study, we investigate whether when subjects in Beijing, China, have the opportunity to contribute to a global public good, their behavior is conditionally cooperative. For this purpose, participants were offered the opportunity to contribute to climate change mitigation by purchasing permits from the Beijing carbon dioxide (CO2) emissions trading scheme (ETS). The purchased permits were then withdrawn from the ETS. Here, individual behavior is controlled by means of the strategy method. In this study, we observed different types of behavior, including conditionally cooperative behavior. Overall, the probability of contributing to CO2 emissions reduction is higher if the subjects considering contributing to CO2 emissions reduction can assume that a two-thirds majority of all the other subjects are also willing to do so, compared to a situation where only up to one-third of all the other participants decide to contribute to this scheme.

Suggested Citation

  • Sturm, Bodo & Pei, Jiansuo & Wang, Ran & Löschel, Andreas & Zhao, Zhongxiu, 2019. "Conditional cooperation in case of a global public good – Experimental evidence from climate change mitigation in Beijing," China Economic Review, Elsevier, vol. 56(C), pages 1-1.
    • Handle: RePEc:eee:chieco:v:56:y:2019:i:c:4
    DOI: 10.1016/j.chieco.2019.101308
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    2. Alt, Marius, 2021. "Committing to behave pro-environmentally: An assessment of time and regulatee-size effects on the demand for environmental regulation," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242419, Verein für Socialpolitik / German Economic Association.
    3. Weimann, Joachim & Brosig-Koch, Jeannette & Heinrich, Timo & Hennig-Schmidt, Heike & Keser, Claudia, 2022. "CO2 Emission reduction – Real public good provision by large groups in the laboratory," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 1076-1089.

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    More about this item

    Keywords

    Conditional cooperation; Emissions trading scheme; ETS; CO2 emissions; Permits;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods

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