People often experience the benefits of taxation with time. We design experiments to test the hypothesis that delaying the benefits of taxation can lead to low support for taxes. In a dynamic market experiment with negative externalities, we consistently find that people are less willing to accept Pigouvian taxes, aimed at reducing negative externalities and restoring market efficiency, when the negative externalities are delayed. While people learn to adopt taxation when the negative externality occurs immediately, the resistance to taxation remains robust over time when the externality is delayed. Our data suggest that people are less likely to support taxation when they found it difficult to understand the working of the new institution. We discuss the policy implications of our findings for promoting support for taxation.
{"title":"Time Delay and Support for Taxation","authors":"S. Tiezzi, Erte Xiao","doi":"10.2139/ssrn.2360218","DOIUrl":"https://doi.org/10.2139/ssrn.2360218","url":null,"abstract":"People often experience the benefits of taxation with time. We design experiments to test the hypothesis that delaying the benefits of taxation can lead to low support for taxes. In a dynamic market experiment with negative externalities, we consistently find that people are less willing to accept Pigouvian taxes, aimed at reducing negative externalities and restoring market efficiency, when the negative externalities are delayed. While people learn to adopt taxation when the negative externality occurs immediately, the resistance to taxation remains robust over time when the externality is delayed. Our data suggest that people are less likely to support taxation when they found it difficult to understand the working of the new institution. We discuss the policy implications of our findings for promoting support for taxation.","PeriodicalId":176966,"journal":{"name":"ERN: Externalities; Redistributive Effects; Environmental Taxes & Subsidies (Topic)","volume":"146 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-01-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128773375","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In August and September 2013, work continued on the Draft Federal Budget for 2014. As the RF Ministry of Finance had managed to ensure the timely preparation of alterations to tax legislation whereby the rates of export customs duties on hydrocarbons are to be reduced, and the rates of Mineral Extraction Tax increased, the Draft Budget was composed with those alterations being taken into consideration1. The RF Supreme Arbitration Court continued to methodologically clarify the application of tax legislation by Russia’s judicial system, which would make it possible to improve the quality of judicial decisions and to reduce the number of errors in lawsuit consideration in courts of first instance.
{"title":"An Overview of Normative Documents on Taxation Issues for August-September 2013","authors":"Ludmila Anisimova","doi":"10.2139/ssrn.2347292","DOIUrl":"https://doi.org/10.2139/ssrn.2347292","url":null,"abstract":"In August and September 2013, work continued on the Draft Federal Budget for 2014. As the RF Ministry of Finance had managed to ensure the timely preparation of alterations to tax legislation whereby the rates of export customs duties on hydrocarbons are to be reduced, and the rates of Mineral Extraction Tax increased, the Draft Budget was composed with those alterations being taken into consideration1. The RF Supreme Arbitration Court continued to methodologically clarify the application of tax legislation by Russia’s judicial system, which would make it possible to improve the quality of judicial decisions and to reduce the number of errors in lawsuit consideration in courts of first instance.","PeriodicalId":176966,"journal":{"name":"ERN: Externalities; Redistributive Effects; Environmental Taxes & Subsidies (Topic)","volume":"30 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-10-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132821221","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We examine the Dutch national groundwater tax (GWT) – a ‘win–win, green’ tax that promised to reduce distortions by simultaneously reducing the income tax burden and improving environmental outcomes. We find no evidence of these impacts. Instead, we see that the GWT increased distortions by taxing a narrow base (a few drinking-water companies reliant on raw groundwater) and interfering with groundwater management programmes funded by an existing provincial groundwater fee. The Dutch government revoked the GWT for being fiscally inefficient and environmentally unhelpful on 31 December 2011, but this story provides some useful lessons.
{"title":"The Life and Death of the Dutch Groundwater Tax","authors":"M. Schuerhoff, H. Weikard, D. Zetland","doi":"10.2139/ssrn.2043763","DOIUrl":"https://doi.org/10.2139/ssrn.2043763","url":null,"abstract":"We examine the Dutch national groundwater tax (GWT) – a ‘win–win, green’ tax that promised to reduce distortions by simultaneously reducing the income tax burden and improving environmental outcomes. We find no evidence of these impacts. Instead, we see that the GWT increased distortions by taxing a narrow base (a few drinking-water companies reliant on raw groundwater) and interfering with groundwater management programmes funded by an existing provincial groundwater fee. The Dutch government revoked the GWT for being fiscally inefficient and environmentally unhelpful on 31 December 2011, but this story provides some useful lessons.","PeriodicalId":176966,"journal":{"name":"ERN: Externalities; Redistributive Effects; Environmental Taxes & Subsidies (Topic)","volume":"455 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121676402","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In this article, we analyse the effects of the carousel value-added tax fraud in the European carbon market and the legislative measures that the EU Member States could adopt to deal with this phenomena. We use a computable general equilibrium model, called GTAP-E and the version 6 of the GTAP database to evaluate the economy-wide and terms of trade effects. The policy test has been designed for five European countries: Belgium, France, Germany, Italy, Netherlands and the United Kingdom. According to our findings, the legislative measures aimed to remove the VAT fraud in the European Emission Trading System will have positive effects in terms of GDP and welfare in the selected EU Member States.
{"title":"The Carousel Value-Added Tax Fraud in the European Emission Trading System","authors":"Maria Berrittella, Filippo Alessandro Cimino","doi":"10.2139/ssrn.2175482","DOIUrl":"https://doi.org/10.2139/ssrn.2175482","url":null,"abstract":"In this article, we analyse the effects of the carousel value-added tax fraud in the European carbon market and the legislative measures that the EU Member States could adopt to deal with this phenomena. We use a computable general equilibrium model, called GTAP-E and the version 6 of the GTAP database to evaluate the economy-wide and terms of trade effects. The policy test has been designed for five European countries: Belgium, France, Germany, Italy, Netherlands and the United Kingdom. According to our findings, the legislative measures aimed to remove the VAT fraud in the European Emission Trading System will have positive effects in terms of GDP and welfare in the selected EU Member States.","PeriodicalId":176966,"journal":{"name":"ERN: Externalities; Redistributive Effects; Environmental Taxes & Subsidies (Topic)","volume":"118 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-11-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121849676","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In most OECD countries the gap between rich and poor has widened over the past decades. This paper analyzes whether and to what extent taxes and social transfers have contributed to this trend. Has the redistributive power of different social programs changed over time? The paper contributes to the literature by disentangling several parts of fiscal redistribution in a comparative setting. We use micro-data from the Luxembourg Income Study to examine household market inequality, redistribution from transfers and taxes, and the underlying social programs that drive the changes, for 20 countries from the mid-1980s to mid-2000s. The contribution of each program is estimated using a sequential accounting budget incidence decomposition technique. The aim of this paper is to offer detailed information on the redistributive impact of social transfer programs. We focus on changes in fiscal redistribution of 13 different social programs and taxes. We observe a sizeable increase in primary household inequality in all 20 countries over the last 25 years (except Ireland). In most countries, the extent of redistribution has increased too. Tax-benefit systems have offset two-third of the average increase in primary income inequality, although they appear to have become less effective in doing so since the mid-1990s. We find that the public old age pensions and the survivors scheme attribute 60 percent to the increase of redistribution during the period 1985-2005 for a subset of countries considered (with full tax/benefit information). Social assistance accounts for 20 percent, and the benefits for sickness, disease, and disability account for around 13 percent of the total increase in redistribution. Other transfers (invalid career benefits, education benefits, child care cash benefits and other child and family benefits) account for 22 percent of the total increase in redistribution. On the contrary, taxes slowed down redistribution by 17 percent during 1985-2005.
{"title":"Disentangling Income Inequality and the Redistributive Effect of Taxes and Transfers in 20 LIS Countries Over Time","authors":"K. Caminada, K. Goudswaard, Chen Wang","doi":"10.2139/ssrn.2168885","DOIUrl":"https://doi.org/10.2139/ssrn.2168885","url":null,"abstract":"In most OECD countries the gap between rich and poor has widened over the past decades. This paper analyzes whether and to what extent taxes and social transfers have contributed to this trend. Has the redistributive power of different social programs changed over time? The paper contributes to the literature by disentangling several parts of fiscal redistribution in a comparative setting. We use micro-data from the Luxembourg Income Study to examine household market inequality, redistribution from transfers and taxes, and the underlying social programs that drive the changes, for 20 countries from the mid-1980s to mid-2000s. The contribution of each program is estimated using a sequential accounting budget incidence decomposition technique. The aim of this paper is to offer detailed information on the redistributive impact of social transfer programs. We focus on changes in fiscal redistribution of 13 different social programs and taxes. We observe a sizeable increase in primary household inequality in all 20 countries over the last 25 years (except Ireland). In most countries, the extent of redistribution has increased too. Tax-benefit systems have offset two-third of the average increase in primary income inequality, although they appear to have become less effective in doing so since the mid-1990s. We find that the public old age pensions and the survivors scheme attribute 60 percent to the increase of redistribution during the period 1985-2005 for a subset of countries considered (with full tax/benefit information). Social assistance accounts for 20 percent, and the benefits for sickness, disease, and disability account for around 13 percent of the total increase in redistribution. Other transfers (invalid career benefits, education benefits, child care cash benefits and other child and family benefits) account for 22 percent of the total increase in redistribution. On the contrary, taxes slowed down redistribution by 17 percent during 1985-2005.","PeriodicalId":176966,"journal":{"name":"ERN: Externalities; Redistributive Effects; Environmental Taxes & Subsidies (Topic)","volume":"27 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-09-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132855772","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2012-09-10DOI: 10.1504/IJIRD.2012.048985
Colin Williams, Amadeo Fuenmayor, S. Nadin, S. Dasi
The growing importance of environmental sustainability has resulted in governments pursuing innovative regulatory changes in order to achieve this goal. The aim of this paper is to evaluate critically whether pursuing innovative regulations in the realm of environmental taxation have elicited more sustainable practices amongst automobile consumers in Spain. The finding is that the tax innovations of the Spanish government that seek to internalise externalities, namely the registration tax and fuel tax, but not the annual circulation tax, are leading automobile consumers to pursue more environmentally sustainable practices, and are also resulting in the automotive sector itself pursuing innovations in the form of strategic alliances to increase the level of product and process innovations so as to achieve greater environmental sustainability.
{"title":"Promoting Sustainable Environmental Practices Amongst Automobile Consumers: An Evaluation of the Impacts of Pursuing Innovations in Tax Regulations","authors":"Colin Williams, Amadeo Fuenmayor, S. Nadin, S. Dasi","doi":"10.1504/IJIRD.2012.048985","DOIUrl":"https://doi.org/10.1504/IJIRD.2012.048985","url":null,"abstract":"The growing importance of environmental sustainability has resulted in governments pursuing innovative regulatory changes in order to achieve this goal. The aim of this paper is to evaluate critically whether pursuing innovative regulations in the realm of environmental taxation have elicited more sustainable practices amongst automobile consumers in Spain. The finding is that the tax innovations of the Spanish government that seek to internalise externalities, namely the registration tax and fuel tax, but not the annual circulation tax, are leading automobile consumers to pursue more environmentally sustainable practices, and are also resulting in the automotive sector itself pursuing innovations in the form of strategic alliances to increase the level of product and process innovations so as to achieve greater environmental sustainability.","PeriodicalId":176966,"journal":{"name":"ERN: Externalities; Redistributive Effects; Environmental Taxes & Subsidies (Topic)","volume":"115 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-09-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114494348","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper studies the aggregate and distributional implications of introducing user fees for publicly provided excludable public goods into a model with consumption and income taxes. The setup is a neoclassical growth model where agents differ in earnings and second-best policy is chosen by a Ramsey government. Our main result is that the adoption of user fees by the Ramsey government not only increases aggregate efficiency, but it also decreases inequality. This result is in contrast to common view and policy practice.
{"title":"Are User Fees Really Regressive?","authors":"G. Economides, A. Philippopoulos","doi":"10.2139/ssrn.2104060","DOIUrl":"https://doi.org/10.2139/ssrn.2104060","url":null,"abstract":"This paper studies the aggregate and distributional implications of introducing user fees for publicly provided excludable public goods into a model with consumption and income taxes. The setup is a neoclassical growth model where agents differ in earnings and second-best policy is chosen by a Ramsey government. Our main result is that the adoption of user fees by the Ramsey government not only increases aggregate efficiency, but it also decreases inequality. This result is in contrast to common view and policy practice.","PeriodicalId":176966,"journal":{"name":"ERN: Externalities; Redistributive Effects; Environmental Taxes & Subsidies (Topic)","volume":"43 7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-07-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128829066","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
R. Färe, S. Grosskopf, T. Lundgren, P. Marklund, Wenchao Zhou
This paper studies the interaction between economic and environmental performance. Applying the directional output distance function approach, the purpose is to compare estimates of Luenberger total factor productivity indicators, including and excluding bad outputs. Specifically, based on unique firm level data from Swedish manufacturing covering the period 1990 to 2008, we explore to what extent excluding bad outputs leads to erroneous productivity measurement. The main conclusion is that bad outputs should not only be included in the estimations, but also reduction in bad outputs should be credited. From this point of view the directional output distance function approach and the Luenberger indicator serves as an appropriate basis of productivity measurement.
{"title":"Productivity: Should We Include Bads?","authors":"R. Färe, S. Grosskopf, T. Lundgren, P. Marklund, Wenchao Zhou","doi":"10.2139/ssrn.2071078","DOIUrl":"https://doi.org/10.2139/ssrn.2071078","url":null,"abstract":"This paper studies the interaction between economic and environmental performance. Applying the directional output distance function approach, the purpose is to compare estimates of Luenberger total factor productivity indicators, including and excluding bad outputs. Specifically, based on unique firm level data from Swedish manufacturing covering the period 1990 to 2008, we explore to what extent excluding bad outputs leads to erroneous productivity measurement. The main conclusion is that bad outputs should not only be included in the estimations, but also reduction in bad outputs should be credited. From this point of view the directional output distance function approach and the Luenberger indicator serves as an appropriate basis of productivity measurement.","PeriodicalId":176966,"journal":{"name":"ERN: Externalities; Redistributive Effects; Environmental Taxes & Subsidies (Topic)","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117197807","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
America Will Eventually Run Out of Non-Renewable Energy Sources: The fact that we will run out of non-renewable energy sources means that we must start acting soon, but we must be careful how we act – we need to be mindful of the unintended consequences that might flow from our well-intentioned attempts at regulating energy consumption. We need to be mindful of the economic consequences of our decisions as well as the environmental consequences.Positive Steps the Government is Taking to Solve the Energy Problem: For example, there exists the possibility of using unconventional oils that require extraction from shale deposits and tar sands like the ones that can be found in Alberta, Canada – home of the third largest crude oil reserve in the world. However, using unconventional oils is very harmful to the planet. The extraction of unconventional oils is more harmful to the environment than conventional oils because of the extra infrastructure needed for the extraction process. There are other beneficial alternatives to using unconventional oils, and there are agencies and programs in place to support the use of renewable energy sources in order to sustain our energy needs. The following section will discuss some of the available options to solving our energy problem.Finding Renewable Sources of Energy: A problem that occurs with using renewable sources of energy is the fact that their use tends to be difficult to implement in the marketplace; it is difficult to make the use of renewable sources of energy worth the cost of implementation. However, there are some renewable energy sources that are plentiful, cost-effective, and widely used in the market today. Some of these renewable energy sources are: hydrogen, woody biomass combustion, geothermal energy, landfill gas, crystalline silicon photovoltaic, solar water heating, onshore wind, and bioethanol from sugars and starch. Along with these readily available and highly used sources of renewable energy are other renewable energy sources that America is technologically prepared to use, but because world markets are only just starting to develop, their use has been minimal thus far. These sources of renewable energy, for which markets are still developing, include: municipal solid waste-to-energy programs, anaerobic digestion, biodiesel, co-firing of biomass, concentrating solar dishes and troughs, solar-assisted air conditioning, mini and micro hydro power, and offshore wind. There are still other methods of renewable energy use that are beneficial to the planet, but are only being used in small-scale commercial operations. Some of these include: tidal range and currents, wave power, biomass gasification, pyrolysis, bioethanol from ligno-cellulose, and solar thermal towers. Further renewable sources of energy such as organic and inorganic nanotechnology solar cells, artificial photosynthesis, biological hydrogen production involving biomass, algae and bacteria, biorefineries, ocean thermal and salin
{"title":"The Vehicle Miles Tax: The Unintended Consequences of Paying as You Drive","authors":"G. Lush","doi":"10.2139/ssrn.1989051","DOIUrl":"https://doi.org/10.2139/ssrn.1989051","url":null,"abstract":"America Will Eventually Run Out of Non-Renewable Energy Sources: The fact that we will run out of non-renewable energy sources means that we must start acting soon, but we must be careful how we act – we need to be mindful of the unintended consequences that might flow from our well-intentioned attempts at regulating energy consumption. We need to be mindful of the economic consequences of our decisions as well as the environmental consequences.Positive Steps the Government is Taking to Solve the Energy Problem: For example, there exists the possibility of using unconventional oils that require extraction from shale deposits and tar sands like the ones that can be found in Alberta, Canada – home of the third largest crude oil reserve in the world. However, using unconventional oils is very harmful to the planet. The extraction of unconventional oils is more harmful to the environment than conventional oils because of the extra infrastructure needed for the extraction process. There are other beneficial alternatives to using unconventional oils, and there are agencies and programs in place to support the use of renewable energy sources in order to sustain our energy needs. The following section will discuss some of the available options to solving our energy problem.Finding Renewable Sources of Energy: A problem that occurs with using renewable sources of energy is the fact that their use tends to be difficult to implement in the marketplace; it is difficult to make the use of renewable sources of energy worth the cost of implementation. However, there are some renewable energy sources that are plentiful, cost-effective, and widely used in the market today. Some of these renewable energy sources are: hydrogen, woody biomass combustion, geothermal energy, landfill gas, crystalline silicon photovoltaic, solar water heating, onshore wind, and bioethanol from sugars and starch. Along with these readily available and highly used sources of renewable energy are other renewable energy sources that America is technologically prepared to use, but because world markets are only just starting to develop, their use has been minimal thus far. These sources of renewable energy, for which markets are still developing, include: municipal solid waste-to-energy programs, anaerobic digestion, biodiesel, co-firing of biomass, concentrating solar dishes and troughs, solar-assisted air conditioning, mini and micro hydro power, and offshore wind. There are still other methods of renewable energy use that are beneficial to the planet, but are only being used in small-scale commercial operations. Some of these include: tidal range and currents, wave power, biomass gasification, pyrolysis, bioethanol from ligno-cellulose, and solar thermal towers. Further renewable sources of energy such as organic and inorganic nanotechnology solar cells, artificial photosynthesis, biological hydrogen production involving biomass, algae and bacteria, biorefineries, ocean thermal and salin","PeriodicalId":176966,"journal":{"name":"ERN: Externalities; Redistributive Effects; Environmental Taxes & Subsidies (Topic)","volume":"43 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125255337","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We present the first evidence of motivation crowding in real purchasing decisions from a field experiment in a large supermarket chain. We compare three instruments aiming to induce climate friendly choices: labels, subsidies, and product bans and neutrally framed versions of the latter two. Labels and bans activate intrinsic motivation of consumers. A subsidy framed as an intervention is less effective than either a label or an equivalent but neutrally framed price change, i.e. when combined, information and price change perform worse than each individually. We therefore find markedly different effects of price and quantity based instruments on intrinsic motivation.
{"title":"Motivation Crowding in Real Purchasing Decisions: Price vs. Quantity Based Instruments","authors":"Grischa Perino, L. Panzone, T. Swanson","doi":"10.2139/ssrn.1775072","DOIUrl":"https://doi.org/10.2139/ssrn.1775072","url":null,"abstract":"We present the first evidence of motivation crowding in real purchasing decisions from a field experiment in a large supermarket chain. We compare three instruments aiming to induce climate friendly choices: labels, subsidies, and product bans and neutrally framed versions of the latter two. Labels and bans activate intrinsic motivation of consumers. A subsidy framed as an intervention is less effective than either a label or an equivalent but neutrally framed price change, i.e. when combined, information and price change perform worse than each individually. We therefore find markedly different effects of price and quantity based instruments on intrinsic motivation.","PeriodicalId":176966,"journal":{"name":"ERN: Externalities; Redistributive Effects; Environmental Taxes & Subsidies (Topic)","volume":"47 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114672813","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}