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Retail demand for voluntary carbon offsets - A choice experiment among Swiss consumers

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Abstract

Using a choice experiment conducted among more than a thousand Swiss consumers, we analyze the individual demand for voluntary carbon offsets in different contexts. The analysis is used to identify the consumers’ underlying motives for offsetting emissions, the context effects on their willingness to pay and the influence of the offsetting project characteristics on their propensity for contribution. Furthermore, the characteristics of potential buyers as well as the possibilities of behavioral rebound are explored. To support our results, we assess whether the hypothetical preferences are consistent with the revealed behavior. The adopted latent class model accounts for heterogeneity of preferences with respect to offset products offered in the market. The results provide a quantitative assessment of consumers’ marginal valuation of carbon offsets and a better understanding of individual preferences. The results also point to strong heterogeneity among individuals favoring targeted policy measures to induce voluntary contribution.

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  • Julia Blasch & Mehdi Farsi, 2012. "Retail demand for voluntary carbon offsets - A choice experiment among Swiss consumers," IED Working paper 12-18, IED Institute for Environmental Decisions, ETH Zurich.
    • Handle: RePEc:ied:wpsied:12-18
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    1. Rotaris, Lucia & Giansoldati, Marco & Scorrano, Mariangela, 2020. "Are air travellers willing to pay for reducing or offsetting carbon emissions? Evidence from Italy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 142(C), pages 71-84.
    2. Julia Blasch & Mehdi Farsi, 2012. "Retail demand for voluntary carbon offsets - A choice experiment among Swiss consumers," IED Working paper 12-18, IED Institute for Environmental Decisions, ETH Zurich.
    3. Schwirplies, Claudia & Dütschke, Elisabeth & Schleich, Joachim & Ziegler, Andreas, 2019. "The willingness to offset CO2 emissions from traveling: Findings from discrete choice experiments with different framings," Ecological Economics, Elsevier, vol. 165(C), pages 1-1.
    4. Stefano Carattini & Simon Levin & Alessandro Tavoni, 2019. "Cooperation in the Climate Commons," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 13(2), pages 227-247.
    5. Schwirplies, Claudia & Dütschke, Elisabeth & Schleich, Joachim & Ziegler, Andreas, 2017. "Consumers' willingness to offset their CO2 emissions from traveling: A discrete choice analysis of framing and provider contributions," Working Papers "Sustainability and Innovation" S05/2017, Fraunhofer Institute for Systems and Innovation Research (ISI).
    6. Reinhard Uehleke & Bodo Sturm, 2017. "The Influence of Collective Action on the Demand for Voluntary Climate Change Mitigation in Hypothetical and Real Situations," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(3), pages 429-454, July.
    7. Cheung, Jimmy & Kragt, Marit & Burton, Michael, 2015. "The awareness and willingness of air travellers to pay for voluntary carbon offsets and their co-benefits," Working Papers 199231, University of Western Australia, School of Agricultural and Resource Economics.
    8. Löschel, Andreas & Sturm, Bodo & Uehleke, Reinhard, 2013. "Revealed preferences for climate protection when the purely individual perspective is relaxed: Evidence from a framed field experiment," ZEW Discussion Papers 13-006, ZEW - Leibniz Centre for European Economic Research.
    9. Michele Baggio, 2012. "The Optimal Management of a Natural Resource with Switching Dynamics," IED Working paper 12-19, IED Institute for Environmental Decisions, ETH Zurich.

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    More about this item

    Keywords

    Voluntary carbon offsets; Willingness to pay; Choice experiment; Latent class model;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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