Experimental evidence on the effect of incentives and domain in risk aversion and discounting tasks

Abstract Environmental policy evaluation is often criticised for employing discount rates that have little grounding in research. Yet, experimental research aimed at eliciting realistic will inevitably require strong assumptions of external validity, while also placing large cognitive demands on subjects by processing tasks increased unfamiliarity. We use a controlled lab experiment to test the impact incentives risk aversion and discounting monetary environmental goods. find that, average, effect or either domain. Exploring heterogeneity treatment socio-demographics some significant patterns emerge. Further, contrary past work, we evidence domain (monetary vs . good) effects both discounting.