Climate Change and Individual Behavior

79 Pages Posted: 18 May 2022 Last revised: 24 Sep 2023

See all articles by René Bernard

René Bernard

Deutsche Bundesbank - Research Centre; Goethe University Frankfurt

Panagiota Tzamourani

Deutsche Bundesbank; European Central Bank (ECB)

Michael Weber

University of Chicago - Finance; National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: September 22, 2023

Abstract

We study the causal effect of providing information about climate change on individuals’ willingness to pay to offset carbon emissions in a survey experiment. Receiving truthful information about ways to reduce CO2 emissions increases individuals’ willingness to pay for voluntary CO2 offsetting by 50% relative to the control group. Individuals’ responses vary with socio-demographic characteristics and along a rich set of prior beliefs and concerns regarding climate change. In a follow-up survey, we study the endogenous information acquisition of survey participants and show individuals choose information that aligns with their views.

Keywords: Climate change, information treatment, willingness to pay, CO2 compensation, information acquisition.

JEL Classification: D10, D83, D91, Q54

Suggested Citation

Bernard, René and Tzamourani, Panagiota and Weber, Michael, Climate Change and Individual Behavior (September 22, 2023). Chicago Booth Research Paper No. 22-13, Fama-Miller Working Paper, University of Chicago, Becker Friedman Institute for Economics Working Paper No. 2022-66, Available at SSRN: https://ssrn.com/abstract=4112620 or http://dx.doi.org/10.2139/ssrn.4112620

René Bernard

Deutsche Bundesbank - Research Centre ( email )

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431
Germany

Goethe University Frankfurt ( email )

Finance Department
Theodor-W.-Adorno-Platz 3
Frankfurt am Main, 60323
Germany

Panagiota Tzamourani

Deutsche Bundesbank ( email )

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431
Germany

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Michael Weber (Contact Author)

University of Chicago - Finance ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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