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An Instrument that Could Turn Crowding-out into Crowding-in

Author

Listed:
  • Antoine Beretti

    (INRA-Lameta)

  • Charles Figuières

    () (INRA-Lameta)

  • Gilles Grolleau

    (INRA-Lameta)

Abstract

Using a simple decision-theoretic approach, we formalize how agents with different kinds of intrinsic motivations react to the introduction of monetary incentives. We contend that empirical results supporting the existence of a crowding-out effect in various contexts hide a more complex reality. We also propose a new policy instrument which taps into agents’ heterogeneity regarding intrinsic motivations in order to turn a situation subject to crowding-out into a crowding-in outcome. This instrument uses a self-selection mechanism to match adequate monetary incentives with individuals’ types regarding intrinsic motivations.

Suggested Citation

  • Antoine Beretti & Charles Figuières & Gilles Grolleau, 2014. "An Instrument that Could Turn Crowding-out into Crowding-in," Working Papers 2014.04, FAERE - French Association of Environmental and Resource Economists.
  • Handle: RePEc:fae:wpaper:2014.04
    as

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    File URL: http://faere.fr/pub/WorkingPapers/Berretti_Figuieres_Grolleau_FAERE_WP2014.04.pdf
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    References listed on IDEAS

    as
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    7. Antoine Beretti & Charles Figuières & Gilles Grolleau, 2013. "Using Money to Motivate Both ‘Saints’ and ‘Sinners’: a Field Experiment on Motivational Crowding-Out," Kyklos, Wiley Blackwell, vol. 66(1), pages 63-77, February.
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    Cited by:

    1. Jacqmin, Julien & Lefebvre, Mathieu, 2016. "Does sector-specific experience matter? The case of European higher education ministers," Research Policy, Elsevier, vol. 45(5), pages 987-998.
    2. Stéphane Mussard & Fattouma Souissi-Benrejab, 2015. "Gini-PLS Regressions," Working Papers 15-03, LAMETA, Universitiy of Montpellier, revised Feb 2015.
      • Stephane Mussard & Fattouma Souissi-Benrejab, 2015. "Gini-PLS Regressions," Cahiers de recherche 17-02, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke, revised Jan 2017.

    More about this item

    Keywords

    Crowding-out; Heterogeneity; Moral motivation; Environmental regulation;

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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