The Demand for Climate Protection – An Empirical Assessment for Germany

46 Pages Posted: 17 Oct 2010

See all articles by Andreas Löschel

Andreas Löschel

University of Muenster - Chair of Microeconomics, esp. Energy and Resource Economics

Bodo Sturm

Leipzig University of Applied Sciences - HTWK Leipzig

Carsten Vogt

Zentrum fuer EuropSische Wirtschaftsforschung (ZEW Centre for European Economic Research), Environmental & Resource Economics

Date Written: 2010

Abstract

In this paper, we investigate the real demand for climate protection. For this purpose we conducted a framed field experiment with a sample of the residential population in Mannheim, Germany. Participants were endowed with € 40 and given the opportunity to contribute to climate protection by purchasing European Union Allowances. Purchased allowances were withdrawn from the European Emissions Trading Scheme (EU ETS). While the median willingness to pay (WTP) for climate protection is zero the mean WTP is approximately € 12/tCO2. We analyse determinants of the observed individual demand behaviour and discuss the potential consequences, which result from the remarkably low WTP and its distribution for German climate policy.

Keywords: Experimental economics, demand for climate protection, climate change, willingness to pay

JEL Classification: Q51, Q54, C93

Suggested Citation

Löschel, Andreas and Sturm, Bodo and Vogt, Carsten, The Demand for Climate Protection – An Empirical Assessment for Germany (2010). ZEW - Centre for European Economic Research Discussion Paper No. 10-068, Available at SSRN: https://ssrn.com/abstract=1692621 or http://dx.doi.org/10.2139/ssrn.1692621

Andreas Löschel (Contact Author)

University of Muenster - Chair of Microeconomics, esp. Energy and Resource Economics ( email )

Universitätsstr. 14-16
48143 Munster
Germany

HOME PAGE: http://www.wiwi.uni-muenster.de/eroe

Bodo Sturm

Leipzig University of Applied Sciences - HTWK Leipzig ( email )

Leipzig
Germany

Carsten Vogt

Zentrum fuer EuropSische Wirtschaftsforschung (ZEW Centre for European Economic Research), Environmental & Resource Economics ( email )

Eco-management
D-68161 Mannheim
Germany
+49 6211235200 (Phone)
+49 6211235226 (Fax)

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