IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v68y2009i7p2078-2086.html
   My bibliography  Save this article

Consumer support for environmental policies: An application to purchases of green cars

Author

Listed:
  • Coad, Alex
  • de Haan, Peter
  • Woersdorfer, Julia Sophie

Abstract

This 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.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:ecolec:v:68:y:2009:i:7:p:2078-2086
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921-8009(09)00038-X
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. de Haan, Peter & Mueller, Michel G. & Peters, Anja, 2006. "Does the hybrid Toyota Prius lead to rebound effects? Analysis of size and number of cars previously owned by Swiss Prius buyers," Ecological Economics, Elsevier, pages 592-605.
    2. Markard, Jochen & Truffer, Bernhard, 2006. "The promotional impacts of green power products on renewable energy sources: direct and indirect eco-effects," Energy Policy, Elsevier, pages 306-321.
    3. Uri Gneezy & Aldo Rustichini, 2000. "Pay Enough or Don't Pay at All," The Quarterly Journal of Economics, Oxford University Press, pages 791-810.
    4. Uri Gneezy & Aldo Rustichini, 2000. "Pay Enough or Don't Pay at All," The Quarterly Journal of Economics, Oxford University Press, pages 791-810.
    5. Hammar, Henrik & Jagers, Sverker C., 2007. "What is a fair CO2 tax increase? On fair emission reductions in the transport sector," Ecological Economics, Elsevier, pages 377-387.
    6. Wustenhagen, Rolf & Wolsink, Maarten & Burer, Mary Jean, 2007. "Social acceptance of renewable energy innovation: An introduction to the concept," Energy Policy, Elsevier, pages 2683-2691.
    7. Frey, Bruno S & Jegen, Reto, 2001. " Motivation Crowding Theory," Journal of Economic Surveys, Wiley Blackwell, vol. 15(5), pages 589-611, December.
    8. Satoshi Fujii & Tommy Gärling & Cecilia Jakobsson & Rong-Chang Jou, 2004. "A cross-country study of fairness and infringement on freedom as determinants of car owners' acceptance of road pricing," Transportation, Springer, pages 285-295.
    9. Kahn, Matthew E., 2007. "Do greens drive Hummers or hybrids? Environmental ideology as a determinant of consumer choice," Journal of Environmental Economics and Management, Elsevier, pages 129-145.
    10. Mueller, Michel G. & de Haan, Peter, 2009. "How much do incentives affect car purchase? Agent-based microsimulation of consumer choice of new cars--Part I: Model structure, simulation of bounded rationality, and model validation," Energy Policy, Elsevier, pages 1072-1082.
    11. Peters, Anja & Mueller, Michel G. & de Haan, Peter & Scholz, Roland W., 2008. "Feebates promoting energy-efficient cars: Design options to address more consumers and possible counteracting effects," Energy Policy, Elsevier, pages 1355-1365.
    12. Buenstorf, Guido & Cordes, Christian, 2008. "Can sustainable consumption be learned? A model of cultural evolution," Ecological Economics, Elsevier, pages 646-657.
    13. Wustenhagen, Rolf & Markard, Jochen & Truffer, Bernhard, 2003. "Diffusion of green power products in Switzerland," Energy Policy, Elsevier, pages 621-632.
    14. Coad, Alex & de Haan, Peter & Woersdorfer, Julia Sophie, 2009. "Consumer support for environmental policies: An application to purchases of green cars," Ecological Economics, Elsevier, pages 2078-2086.
    15. Alex Coad & Peter de Haan & Julia Sophie Woersdorfer, 2008. "Consumer support for environmental policies: An application to purchases of green cars," Jena Economic Research Papers 2008-035, Friedrich-Schiller-University Jena.
    16. Jakobsson, C. & Fujii, S. & Gärling, T., 2000. "Determinants of private car users' acceptance of road pricing," Transport Policy, Elsevier, pages 153-158.
    17. Teisl, Mario F. & Rubin, Jonathan & Noblet, Caroline L., 2008. "Non-dirty dancing? Interactions between eco-labels and consumers," Journal of Economic Psychology, Elsevier, pages 140-159.
    18. de Haan, Peter & Mueller, Michel G. & Scholz, Roland W., 2009. "How much do incentives affect car purchase? Agent-based microsimulation of consumer choice of new cars--Part II: Forecasting effects of feebates based on energy-efficiency," Energy Policy, Elsevier, pages 1083-1094.
    19. Blamey, R. K. & Bennett, J. W. & Louviere, J. J. & Morrison, M. D. & Rolfe, J., 2000. "A test of policy labels in environmental choice modelling studies," Ecological Economics, Elsevier, pages 269-286.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Environmental policy Technology adoption Technology diffusion Intrinsic motivation Financial incentives;

    JEL classification:

    • 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, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:68:y:2009:i:7:p:2078-2086. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.