Title
Consumer support for environmental policies: An application to purchases of green cars
Date Issued
15 May 2009
Access level
open access
Resource Type
journal article
Author(s)
Max Planck Institute of Economics
Publisher(s)
Elsevier
Abstract
This paper focuses on how consumer motivation can be tapped in order to encourage the adoption of cleaner technologies. Consumers are heterogeneous - they may be guided by intrinsic motivation or extrinsic motivation. While information provision policies (such as the energy label for cars) may be effective in encouraging certain consumers to adopt green cars, financial incentive schemes (such as subsidies or fines) may be more persuasive for extrinsically-motivated consumers. We develop a dynamic theory of adoption of environmental innovations, in which information-provision policies are followed by financial incentives (first 'carrot', then 'stick' incentives). Analysis of a survey dataset of Swiss households observes considerable heterogeneity in terms of support of information-provision or financial incentive policies, in line with our conjectures. Our results will be of particular interest to policymakers interested in guiding consumers towards cleaner technologies.
Start page
2078
End page
2086
Volume
68
Issue
7
Language
English
OCDE Knowledge area
Ciencia política
Economía
Subjects
Scopus EID
2-s2.0-65249137572
Source
Ecological Economics
ISSN of the container
09218009
Sources of information:
Directorio de Producción Científica
Scopus