The Demand for Global and Local Environmental Protection – Experimental Evidence from Climate Change Mitigation in Beijing

53 Pages Posted: 20 Apr 2018

See all articles by Andreas Löschel

Andreas Löschel

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

Jiansuo Pei

Renmin University of China

Bodo Sturm

Leipzig University of Applied Sciences - HTWK Leipzig

Ran Wang

University of International Business and Economics (UIBE)

Wolfgang Buchholz

Universitaet Regensburg; CESifo (Center for Economic Studies and Ifo Institute)

Zhongxiu Zhao

University of International Business and Economics (UIBE) - School of International Trade and Economics

Multiple version iconThere are 2 versions of this paper

Date Written: 2018

Abstract

In this study, the real demand for global and local environmental protection in Beijing, China, is elicited and investigated. Participants from Beijing were offered the opportunity to contribute to voluntary climate change mitigation by purchasing permits from two Chinese CO2 emissions trading schemes (ETS). Purchased permits were withdrawn from the ETS. Since CO2 emissions mitigation is inevitably linked to other local benefits like the reduction in emissions of air pollutants, the aim of our study is to establish the demand for local and global environmental protection. To this end, Beijing and Shenzhen ETS permits were offered. The result is that at low prices the demand for Beijing ETS permits is significantly higher than for Shenzhen ETS permits indicating that a substantial part of the revealed demand for voluntary climate change mitigation in Beijing is driven by concerns for local co-benefits of CO2 emissions reduction. Our research identifies the important role of private benefits in the voluntary provision of the global public good climate change mitigation and provides first experimental evidence for China.

Keywords: demand for environmental protection, experimental economics, willingness to pay, China; voluntary climate change mitigation, co-benefits

JEL Classification: Q51, Q54, C93

Suggested Citation

Löschel, Andreas and Pei, Jiansuo and Sturm, Bodo and Wang, Ran and Buchholz, Wolfgang and Zhao, Zhongxiu, The Demand for Global and Local Environmental Protection – Experimental Evidence from Climate Change Mitigation in Beijing (2018). ZEW - Centre for European Economic Research Discussion Paper No. 18-017, Available at SSRN: https://ssrn.com/abstract=3165405 or http://dx.doi.org/10.2139/ssrn.3165405

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

Jiansuo Pei

Renmin University of China ( email )

59, Zhonguancun Street
Haidian District
Beijing, Beijing 100872
China
+861062699033 (Phone)

Bodo Sturm

Leipzig University of Applied Sciences - HTWK Leipzig ( email )

Leipzig
Germany

Ran Wang

University of International Business and Economics (UIBE) ( email )

10, Huixin Dongjie
Changyang District
Beijing, Beijing 100029
China

Wolfgang Buchholz

Universitaet Regensburg ( email )

D-93040 Regensburg, 93053
Germany

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Zhongxiu Zhao

University of International Business and Economics (UIBE) - School of International Trade and Economics ( email )

10 East Huixin Street
Chaouang District
Beijing, 100029
China

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