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The demand for climate protection: An empirical assessment for Germany

  • Löschel, Andreas
  • Sturm, Bodo
  • Vogt, Carsten

In this paper, we investigate the real demand for climate protection. For this purpose we conducted a framed field experiment with a sample of the residential population in Mannheim, Germany. Participants were endowed with € 40 and given the opportunity to contribute to climate protection by purchasing European Union Allowances. Purchased allowances were withdrawn from the European Emissions Trading Scheme (EU ETS). While the median willingness to pay (WTP) for climate protection is zero the mean WTP is approximately € 12/tCO2. We analyse determinants of the observed individual demand behaviour and discuss the potential consequences, which result from the remarkably low WTP and its distribution for German climate policy.

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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 10-068.

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Date of creation: 2010
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Handle: RePEc:zbw:zewdip:10068
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  1. Lusk, Jayson L. & Fox, John A., 2003. "Value elicitation in retail and laboratory environments," Economics Letters, Elsevier, vol. 79(1), pages 27-34, April.
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