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Big Hassle on the Decarbonization Frontier

Author

Listed:
  • Sébastien Houde
  • Maya Papineau
  • Nicholas Rivers
  • Kareman Yassin

Abstract

We introduce the concept of marginal hassle cost (MHC)–the opportunity cost of time required to complete burdensome administrative tasks–as a measure of non-pecuniary transaction costs. We then propose an experimental procedure to elicit the MHC and validate the approach through a large-scale field experiment on heat pump adoption in Canada. On average, the MHC is equal to respondents’ wage rate, but it exhibits substantial individual heterogeneity and is only weakly correlated with wages. MHCs are systematically higher for human-assisted than for computer-assisted tasks. Our findings highlight that total hassle costs are economically significant and deter participation in government programs aimed at decarbonization.

Suggested Citation

  • Sébastien Houde & Maya Papineau & Nicholas Rivers & Kareman Yassin, 2025. "Big Hassle on the Decarbonization Frontier," CESifo Working Paper Series 12326, CESifo.
    • Handle: RePEc:ces:ceswps:_12326
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    File URL: https://www.ifo.de/DocDL/cesifo1_wp12326.pdf
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    Keywords

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    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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