IDEAS home Printed from https://ideas.repec.org/a/spr/climat/v178y2025i3d10.1007_s10584-025-03897-5.html
   My bibliography  Save this article

Carbon credit does not buy moral credit: moral licensing and perceived hypocrisy of carbon emission offsetting and reduction

Author

Listed:
  • Haoran Chu

    (University of Florida)

  • Shupei Yuan

    (Northern Illinois University)

Abstract

The 1.5 °C global temperature increase target necessitates the transition to net zero emission in various sectors to mitigate the potential threat of global climate change. Net zero may be achieved through diverse means, but stakeholders tend to favor direct emission cuts over offsetting through carbon credit purchases. However, it is unclear what motivates such preferences. Three experiments (N = 2,215), including one pre-registered, were conducted to unpack public moral evaluations of carbon emission reduction and offsetting. While offsetting gives companies moral credit and credentials, it is seen as hypocritical even when net zero or negative emission was achieved. However, mixing offsetting with reduction alleviates the hypocrisy perception. Such moral evaluations subsequently lead to different attitudinal and behavioral responses among key stakeholders. Our findings highlight that emission offsetting cannot substitute reduction and call for more transparent climate communication.

Suggested Citation

  • Haoran Chu & Shupei Yuan, 2025. "Carbon credit does not buy moral credit: moral licensing and perceived hypocrisy of carbon emission offsetting and reduction," Climatic Change, Springer, vol. 178(3), pages 1-20, March.
    • Handle: RePEc:spr:climat:v:178:y:2025:i:3:d:10.1007_s10584-025-03897-5
    DOI: 10.1007/s10584-025-03897-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10584-025-03897-5
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10584-025-03897-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    References listed on IDEAS

    as
    1. Tiefenbeck, Verena & Staake, Thorsten & Roth, Kurt & Sachs, Olga, 2013. "For better or for worse? Empirical evidence of moral licensing in a behavioral energy conservation campaign," Energy Policy, Elsevier, vol. 57(C), pages 160-171.
    2. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    3. Detlef P. van Vuuren & Elke Stehfest & David E. H. J. Gernaat & Maarten Berg & David L. Bijl & Harmen Sytze Boer & Vassilis Daioglou & Jonathan C. Doelman & Oreane Y. Edelenbosch & Mathijs Harmsen & A, 2018. "Alternative pathways to the 1.5 °C target reduce the need for negative emission technologies," Nature Climate Change, Nature, vol. 8(5), pages 391-397, May.
    4. Baranzini, Andrea & Borzykowski, Nicolas & Carattini, Stefano, 2018. "Carbon offsets out of the woods? Acceptability of domestic vs. international reforestation programmes in the lab," Journal of Forest Economics, Elsevier, vol. 32(C), pages 1-12.
    5. Anderson, Brilé & Bernauer, Thomas, 2016. "How much carbon offsetting and where? Implications of efficiency, effectiveness, and ethicality considerations for public opinion formation," Energy Policy, Elsevier, vol. 94(C), pages 387-395.
    6. Dong-Ho Lee & Dong-hwan Kim & Seong-il Kim, 2018. "Characteristics of forest carbon credit transactions in the voluntary carbon market," Climate Policy, Taylor & Francis Journals, vol. 18(2), pages 235-245, February.
    7. Femenias Rosselló, Llorenç B. & Bujosa Bestard, Angel & Riera Font, Antoni, 2024. "Is carbon footprint reduction always preferred over offsetting? An analysis of tourists' preferences in the Mallorca region," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1371-1381.
    8. Ryoo, Yuhosua, 2022. "Moral credentials versus moral credits: Two paths to consumers’ licensing of brand transgressions," Journal of Business Research, Elsevier, vol. 146(C), pages 13-31.
    9. Ezra Markowitz, 2012. "Is climate change an ethical issue? Examining young adults’ beliefs about climate and morality," Climatic Change, Springer, vol. 114(3), pages 479-495, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jens Abildtrup & Jette Bredahl Jacobsen & Suzanne Elizabeth Vedel & Udo Mantau & Robert Mavsar & Davide Pettenella & Irina Prokofieva & Florian Schubert & Anne Stenger & Elsa Varela & Enrico Vidale & , 2024. "Preferences for climate change policies: the role of co-benefits," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 13(1), pages 110-128, January.
    2. Bartels, Lara & Kesternich, Martin & Löschel, Andreas, 2021. "The demand for voluntary carbon sequestration: Experimental evidence from a reforestation project in Germany," ZEW Discussion Papers 21-088, ZEW - Leibniz Centre for European Economic Research.
    3. Femenias Rosselló, Llorenç B. & Bujosa Bestard, Angel & Riera Font, Antoni, 2024. "Is carbon footprint reduction always preferred over offsetting? An analysis of tourists' preferences in the Mallorca region," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1371-1381.
    4. Persson, Torsten & Tabellini, Guido, 2002. "Political economics and public finance," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 24, pages 1549-1659, Elsevier.
    5. Frans P. Vries & Nick Hanley, 2016. "Incentive-Based Policy Design for Pollution Control and Biodiversity Conservation: A Review," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(4), pages 687-702, April.
    6. George Tridimas & Stanley L. Winer, 2018. "On the Definition and Nature of Fiscal Coercion," Carleton Economic Papers 18-09, Carleton University, Department of Economics.
    7. Mario Jametti & Thomas von Ungern-Sternberg, 2005. "Assessing the Efficiency of an Insurance Provider—A Measurement Error Approach," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 30(1), pages 15-34, June.
    8. Stefan Ambec & Yann Kervinio, 2016. "Cooperative decision-making for the provision of a locally undesirable facility," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 46(1), pages 119-155, January.
    9. Kurtis Swope & Ryan Wielgus & Pamela Schmitt & John Cadigan, 2011. "Contracts, Behavior, and the Land-assembly Problem: An Experimental Study," Research in Experimental Economics, in: Experiments on Energy, the Environment, and Sustainability, pages 151-180, Emerald Group Publishing Limited.
    10. Ralph E. Townsend, 2010. "Transactions costs as an obstacle to fisheries self-governance in New Zealand," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(3), pages 301-320, July.
    11. Simon Levin & Anastasios Xepapadeas, 2021. "On the Coevolution of Economic and Ecological Systems," Annual Review of Resource Economics, Annual Reviews, vol. 13(1), pages 355-377, October.
    12. Karsten Neuhoff, 2002. "Optimal congestion treatment for bilateral electricity trading," Working Papers EP05, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    13. Maximiliano Marzetti & Rok Spruk, 2023. "Long-Term Economic Effects of Populist Legal Reforms: Evidence from Argentina," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 65(1), pages 60-95, March.
    14. Zilberman, David & Just, Richard E., 1979. "Risk Aversion And Property Rights," 1979 Annual Meeting, July 29-August 1, Pullman, Washington 278195, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Ayami Hayashi & Fuminori Sano & Takashi Homma & Keigo Akimoto, 2023. "Mitigating trade-offs between global food access and net-zero emissions: the potential contribution of direct air carbon capture and storage," Climatic Change, Springer, vol. 176(5), pages 1-19, May.
    16. Aseem Kaul & Jiao Luo, 2018. "An economic case for CSR: The comparative efficiency of for‐profit firms in meeting consumer demand for social goods," Strategic Management Journal, Wiley Blackwell, vol. 39(6), pages 1650-1677, June.
    17. Jonathan M. Lee, 2015. "The Impact of Heterogeneous NOx Regulations on Distributed Electricity Generation in U.S. Manufacturing," Working Papers 15-12, Center for Economic Studies, U.S. Census Bureau.
    18. Derek Jones & Panu Kalmi & Niels Mygind, 2005. "Choice of Ownership Structure and Firm Performance: Evidence from Estonia," Post-Communist Economies, Taylor & Francis Journals, vol. 17(1), pages 83-107.
    19. Andrés Abeliuk & Gerardo Berbeglia & Pascal Van Hentenryck, 2015. "Bargaining Mechanisms for One-Way Games," Games, MDPI, vol. 6(3), pages 1-21, September.
    20. Leonardo A. Lanzona, 2007. "The Determination of Contracts in Agricultural Economies," Development Economics Working Papers 22641, East Asian Bureau of Economic Research.

    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:spr:climat:v:178:y:2025:i:3:d:10.1007_s10584-025-03897-5. See general information about how to correct material in RePEc.

    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 bibliographic 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.