Voluntary Action for Climate Change Mitigation Does Not Exhibit Locational Preferences

Posted: 24 Mar 2018

See all articles by Johannes Diederich

Johannes Diederich

Heidelberg University - Alfred Weber Institute for Economics

Timo Goeschl

University of Heidelberg - Alfred Weber Institute for Economics

Date Written: March 15, 2018

Abstract

The climate system is indifferent as to the location of voluntary mitigation activities. Are people? Our artifactual online field experiment varies, for residents of a European Union member state, (1) whether the location of a real CO2 mitigation measure is made salient or not or (2) whether the salient location is in the European Union or in a developing country. Harnessing between- and within-subjects variation in our panel data and controlling for cost effectiveness, we find that subjects respond to the location being made salient. Contrary to previous evidence, however, they are indifferent between mitigation sites. We conclude that locational preferences need not stand in the way of realizing the gains from comparative advantage in climate change mitigation.

Keywords: Climate change, mitigation, public goods, locational preferences, online experiment, field experiment

JEL Classification: D10, H41, Q54

Suggested Citation

Diederich, Johannes and Goeschl, Timo, Voluntary Action for Climate Change Mitigation Does Not Exhibit Locational Preferences (March 15, 2018). Journal of Environmental Economics and Management, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3144770

Johannes Diederich (Contact Author)

Heidelberg University - Alfred Weber Institute for Economics ( email )

Bergheimer Str. 20
Heidelberg, D-69115
Germany

Timo Goeschl

University of Heidelberg - Alfred Weber Institute for Economics ( email )

Bergheimer Str. 20
D-69115 Heidelberg
Germany

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