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Green goods: are they good or bad news for the environment? Evidence from a laboratory experiment on impure public goods

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Abstract

An impure public good is a commodity that combines public and private characteristics in fixed proportions. Green goods such as dolphin-friendly tuna or green electricity programmes provide increasingly popular examples of impure public goods. We design an experiment to test how the presence of impure public goods affects pro-social behaviour. We set parameters, such that from a theoretical point of view the presence of the impure public good is behaviourally irrelevant. In a baseline setting, where the impure public good provides only small contributions to the public good, we observe that on aggregate pro-social behaviour, defined as total contributions to the public good, is lower in the presence of the impure good. Some individuals do not alter their decisions, but roughly two fifths of subjects make a lower contribution to the public good in the presence of the impure public good. On the contrary, in the case where the impure public good favours the public good component at the expense of private earnings, individuals are unaffected in their behaviour. We conclude that the presence of green goods which have only a small environmental component may reduce pro-environmental behaviour.

Suggested Citation

  • Alistair Munro & Marieta Valente, 2008. "Green goods: are they good or bad news for the environment? Evidence from a laboratory experiment on impure public goods," NIMA Working Papers 37, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho, revised Dec 2011.
  • Handle: RePEc:nim:nimawp:37/2008
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    1. Alistair Munro & Marieta Valente, 2016. "Green Goods: Are They Good or Bad News for the Environment? Evidence from a Laboratory Experiment on Impure Public Goods," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(2), pages 317-335, October.
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    Cited by:

    1. Jana Friedrichsen & Dirk Engelmann, 2017. "Who Cares about Social Image?," Discussion Papers of DIW Berlin 1634, DIW Berlin, German Institute for Economic Research.
    2. Dirk Engelmann & Alistair Munro & Marieta Valente, 2011. "On the behavioural relevance of optional and mandatory impure public goods: results from a laboratory experiment," NIMA Working Papers 45, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho.
    3. Alistair Munro & Marieta Valente, 2016. "Green Goods: Are They Good or Bad News for the Environment? Evidence from a Laboratory Experiment on Impure Public Goods," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(2), pages 317-335, October.
    4. repec:eee:joepsy:v:61:y:2017:i:c:p:134-144 is not listed on IDEAS
    5. Richard Cornes, 2016. "Aggregative Environmental Games," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(2), pages 339-365, February.

    More about this item

    Keywords

    green goods; impure public goods; pro-social behaviour; social norms; experimental economics;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q59 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Other

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