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The demand for global and local environmental protection: Experimental evidence from climate change mitigation in Beijing

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  • Loeschel, Andreas
  • Pei, Jiansuo
  • Sturm, Bodo
  • Wang, Ran
  • Buchholz, Wolfgang
  • Zhao, Zhongxiu

Abstract

In this study, the real demand for global and local environmental protection in Beijing, China, is elicited and investigated. Participants from Beijing were offered the opportunity to contribute to voluntary climate change mitigation by purchasing permits from two Chinese CO2 emissions trading schemes (ETS). Purchased permits were withdrawn from the ETS. Since CO2 emissions mitigation is inevitably linked to other local benefits like the reduction in emissions of air pollutants, the aim of our study is to establish the demand for local and global environmental protection. To this end, Beijing and Shenzhen ETS permits were offered. The result is that at low prices the demand for Beijing ETS permits is significantly higher than for Shenzhen ETS permits indicating that a substantial part of the revealed demand for voluntary climate change mitigation in Beijing is driven by concerns for local co-benefits of CO2 emissions reduction. Our research identifies the important role of private benefits in the voluntary provision of the global public good climate change mitigation and provides first experimental evidence for China.

Suggested Citation

  • Loeschel, Andreas & Pei, Jiansuo & Sturm, Bodo & Wang, Ran & Buchholz, Wolfgang & Zhao, Zhongxiu, 2018. "The demand for global and local environmental protection: Experimental evidence from climate change mitigation in Beijing," ZEW Discussion Papers 18-017, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:18017
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    Cited by:

    1. Sturm, Bodo & Pei, Jiansuo & Wang, Ran & Löschel, Andreas & Zhao, Zhongxiu, 2019. "Conditional cooperation in case of a global public good – Experimental evidence from climate change mitigation in Beijing," China Economic Review, Elsevier, vol. 56(C), pages 1-1.
    2. Chen, Quanrun & Löschel, Andreas & Pei, Jiansuo & Peters, Glen P. & Xue, Jinjun & Zhao, Zhongxiu, 2019. "Processing trade, foreign outsourcing and carbon emissions in China," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 1-12.

    More about this item

    Keywords

    demand for environmental protection; experimental economics; willingness to pay; China; voluntary climate change mitigation; co-benefits;

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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