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Technology adoption subsidies : An experiment with managers

Listed author(s):
  • Aalbers, R.F.T.
  • van der Heijden, E.C.M.

    (Tilburg University, School of Economics and Management)

  • Potters, J.J.M.

    (Tilburg University, School of Economics and Management)

  • van Soest, D.P.

    (Tilburg University, School of Economics and Management)

  • Vollebergh, H.R.J.

    (Tilburg University, School of Economics and Management)

We evaluate the impact of technology adoption subsidies on in- vestment behavior in an individual choice experiment. In a laboratory setting professional managers are confronted with an intertemporal decision problem in which they have to decide whether or not to search for, and possibly adopt, a new technology. Technologies differ in the per-period benefits they yield, and their purchase price increases with the per-period benefits provided. We introduce a subsidy on the more expensive technologies (that also yield the larger per-period benefits), and find that the subsidy scheme induces agents to search for and adopt these more expensive technologies even though the subsidy itself is too small to render these technologies profitable. We speculate that the result is driven by the positive connotation (affect) that the concept 'subsidy' invokes.

(This abstract was borrowed from another version of this item.)

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File URL: https://pure.uvt.nl/portal/files/1113707/Aalbers_et_al_ENERGY_2009_Technology_adoption_subsidies.pdf
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Paper provided by Tilburg University, School of Economics and Management in its series Other publications TiSEM with number 3fd22e8e-1390-40c9-8031-f0a120404870.

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Date of creation: 2009
Publication status: Published in Energy Economics (2009), v.31, nr.3, p.431-442
Handle: RePEc:tiu:tiutis:3fd22e8e-1390-40c9-8031-f0a120404870
Contact details of provider: Web page: https://www.tilburguniversity.edu/about/schools/economics-and-management/

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