Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/24646
Authors: 
Dannenberg, Astrid
Sturm, Bodo
Vogt, Carsten
Year of Publication: 
2007
Series/Report no.: 
ZEW Discussion Papers 07-063
Abstract: 
This paper investigates in how far equity preferences may matter for climate negotiations. For this purposes we conducted a simple experiment with people who have been involved in international climate policy. The experiment, which was run via the Internet, consisted of two simple non-strategic games suited to measure the parameters of inequity aversion in a Fehr and Schmidt (1999) utility function. We find that our participants show aversion against advantageous as well as disadvantageous inequity to a considerable amount. Moreover, the degree of inequity aversion is higher compared to that of students in the similar study of Dannenberg et al. (2007). Regarding the geographical variety in our sample, we cannot confirm significant differences in the degree of inequity aversion between different regions in the world, which is in line with previous findings from the experimental literature. This finding lends support to the hypothesis that equity preferences are "hard-wired" and not much influenced by socio-economic or cultural circumstances.
Subjects: 
individual preferences
inequity aversion
climate policy
experimental economics
public goods
JEL: 
H41
C92
C91
Document Type: 
Working Paper

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