When is green too rosy? Evidence from a laboratory market experiment on green goods and externalities

Detalhes bibliográficos
Autor(a) principal: Fernandes, Maria Eduarda
Data de Publicação: 2018
Outros Autores: Valente, Marieta
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10400.8/3684
Resumo: In a context where sustainable consumption and production need to be encouraged, economic experiments can provide significant insights into how individuals consider environmental externalities in their choices and how public policy can foster the environmental public good. Experimental studies aiming to evaluate market mitigation of externalities through the provision of green goods usually choose to adopt neutral language in terms of framing. Our study implements an incentivized economics experiment to explore how supply and demand consider negative externalities. Furthermore, the study addresses the impact of using non-abstract wording when describing negative externalities. Two types of goods can be produced and bought, namely goods generating negative externalities on other consumers (either labelled as B or brown) and goods that cause no harm to others (either labelled A or green). We conclude that the provision of green goods increases from 18.1% in the abstract frame to 70% in the environmental frame. Framing is, therefore, a relevant variable for the outcome of this experimental market. This has important implications for economic experiments aiming to evaluate pro-environmental behaviours and provide policy orientations for the provision of green goods.
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spelling When is green too rosy? Evidence from a laboratory market experiment on green goods and externalitiesLaboratory experimentsFraming effectAbstract instructionsGreen goodsPublic goodsExternal validityPro-environmental behaviourIn a context where sustainable consumption and production need to be encouraged, economic experiments can provide significant insights into how individuals consider environmental externalities in their choices and how public policy can foster the environmental public good. Experimental studies aiming to evaluate market mitigation of externalities through the provision of green goods usually choose to adopt neutral language in terms of framing. Our study implements an incentivized economics experiment to explore how supply and demand consider negative externalities. Furthermore, the study addresses the impact of using non-abstract wording when describing negative externalities. Two types of goods can be produced and bought, namely goods generating negative externalities on other consumers (either labelled as B or brown) and goods that cause no harm to others (either labelled A or green). We conclude that the provision of green goods increases from 18.1% in the abstract frame to 70% in the environmental frame. Framing is, therefore, a relevant variable for the outcome of this experimental market. This has important implications for economic experiments aiming to evaluate pro-environmental behaviours and provide policy orientations for the provision of green goods.IC-OnlineFernandes, Maria EduardaValente, Marieta2018-12-21T10:18:08Z2018-09-142018-09-14T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.8/3684engFernandes, M.E.; Valente, M. When Is Green Too Rosy? Evidence from a Laboratory Market Experiment on Green Goods and Externalities. Games 2018, 9, 70.2073-4336https://doi.org/10.3390/g9030070info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-01-17T15:47:42Zoai:iconline.ipleiria.pt:10400.8/3684Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T01:47:45.129975Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv When is green too rosy? Evidence from a laboratory market experiment on green goods and externalities
title When is green too rosy? Evidence from a laboratory market experiment on green goods and externalities
spellingShingle When is green too rosy? Evidence from a laboratory market experiment on green goods and externalities
Fernandes, Maria Eduarda
Laboratory experiments
Framing effect
Abstract instructions
Green goods
Public goods
External validity
Pro-environmental behaviour
title_short When is green too rosy? Evidence from a laboratory market experiment on green goods and externalities
title_full When is green too rosy? Evidence from a laboratory market experiment on green goods and externalities
title_fullStr When is green too rosy? Evidence from a laboratory market experiment on green goods and externalities
title_full_unstemmed When is green too rosy? Evidence from a laboratory market experiment on green goods and externalities
title_sort When is green too rosy? Evidence from a laboratory market experiment on green goods and externalities
author Fernandes, Maria Eduarda
author_facet Fernandes, Maria Eduarda
Valente, Marieta
author_role author
author2 Valente, Marieta
author2_role author
dc.contributor.none.fl_str_mv IC-Online
dc.contributor.author.fl_str_mv Fernandes, Maria Eduarda
Valente, Marieta
dc.subject.por.fl_str_mv Laboratory experiments
Framing effect
Abstract instructions
Green goods
Public goods
External validity
Pro-environmental behaviour
topic Laboratory experiments
Framing effect
Abstract instructions
Green goods
Public goods
External validity
Pro-environmental behaviour
description In a context where sustainable consumption and production need to be encouraged, economic experiments can provide significant insights into how individuals consider environmental externalities in their choices and how public policy can foster the environmental public good. Experimental studies aiming to evaluate market mitigation of externalities through the provision of green goods usually choose to adopt neutral language in terms of framing. Our study implements an incentivized economics experiment to explore how supply and demand consider negative externalities. Furthermore, the study addresses the impact of using non-abstract wording when describing negative externalities. Two types of goods can be produced and bought, namely goods generating negative externalities on other consumers (either labelled as B or brown) and goods that cause no harm to others (either labelled A or green). We conclude that the provision of green goods increases from 18.1% in the abstract frame to 70% in the environmental frame. Framing is, therefore, a relevant variable for the outcome of this experimental market. This has important implications for economic experiments aiming to evaluate pro-environmental behaviours and provide policy orientations for the provision of green goods.
publishDate 2018
dc.date.none.fl_str_mv 2018-12-21T10:18:08Z
2018-09-14
2018-09-14T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.8/3684
url http://hdl.handle.net/10400.8/3684
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Fernandes, M.E.; Valente, M. When Is Green Too Rosy? Evidence from a Laboratory Market Experiment on Green Goods and Externalities. Games 2018, 9, 70.
2073-4336
https://doi.org/10.3390/g9030070
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
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