What Parents Know that Economists Don’t Instrument Choice and Motivational Crowding in an Environmental Context
نویسندگان
چکیده
Among environmental economists instrument choice has tended to come down to the task of ’getting the prices right’. Command-and-control interventions were viewed with suspicion. Recently, behavioral economics has revealed undesired interactions between price regulation and intrinsic motivation. We contribute by experimentally testing direct and persistence effects of taxes and command-and-control regulation in an environmental context. By imposing and lifting regulations on subjects facing a trade-off between private payoffs and real CO2 abatement, we find a so far unaccounted benefit of emission standards. They crowdout voluntary contributions less, but, once removed, induce a higher level of environmental benign behavior than taxes. JEL classification: H3, H23, Q5, K32
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