Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/264192 
Year of Publication: 
2022
Series/Report no.: 
Working Paper Sustainability and Innovation No. S10/2022
Publisher: 
Fraunhofer-Institut für System- und Innovationsforschung ISI, Karlsruhe
Abstract: 
This paper examines individuals' willingness to pay (WTP) to offset their carbon footprint in response to receiving information about (i) the size of their own carbon footprint, and (ii) further receiving in addition information about the difference between their carbon footprint and the target footprint, i.e. per-capita GHG emissions compatible with the 1.5êC target. The analysis employs a demographically representative survey among the adult population in Germany, which includes a comprehensive online carbon footprint calculator and randomized information treatments. The findings from estimating double hurdle models suggest that disclosing information about the size of the individual carbon footprint increases average WTP by about one third. Providing this information appears to affect the intensive margin but not the extensive margin. In comparison, providing information about the size of their carbon footprint together with information about the difference between their carbon footprint and the target footprint does not appear to affect individuals' WTP. Further, the WTP is related with income, gender, age, education, carbon literacy, the belief that carbon offsetting is effective, and with environmental preferences. In comparison, the findings provide no statistically significant evidence that the WTP is associated with the size of the individual carbon footprint, and whether participants consider their carbon footprint to be higher or lower than the carbon footprint of the average adult in the population.
Subjects: 
carbon footprint
willingness to pay
social norms
information disclosure
JEL: 
H41
Q54
Document Type: 
Working Paper

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