Climate Change and Individual Behavior

69 Pages Posted: 18 May 2022 Last revised: 29 May 2022

See all articles by René Bernard

René Bernard

Deutsche Bundesbank - Research Centre; Goethe University Frankfurt

Panagiota Tzamourani

Deutsche Bundesbank

Michael Weber

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

Multiple version iconThere are 2 versions of this paper

Date Written: May 15, 2022

Abstract

This paper studies the causal effect of providing information about climate change on individuals’ willingness to pay to offset carbon emissions in a randomized control trial. Receiving truthful information about ways to reduce CO2 emissions increases individuals’ willingness to pay for voluntary CO2 offsetting relative to the control group. Individuals’ responses vary depending on their sociodemographic 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 (May 15, 2022). 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

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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