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The demand for global and local environmental protection - experimental evidence from climate change mitigation in Beijing


Löschel, Andreas ; Pei, Jiansuo ; Sturm, Bodo ; Wang, Ran ; Buchholz, Wolfgang ; Zhao, Zhongxiu


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URL: https://ub-madoc.bib.uni-mannheim.de/45653
URN: urn:nbn:de:bsz:180-madoc-456538
Document Type: Working paper
Year of publication: 2018
The title of a journal, publication series: ZEW Discussion Papers
Volume: 18-017
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: Q51 , Q54 , C93,
Keywords (English): Demand for environmental protection , experimental economics , willingness to pay , China , voluntary climate change mitigation , co-benefits
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 Purchased permits were withdrawn from the ETS.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.

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BASE: Löschel, Andreas ; Pei, Jiansuo ; Sturm, Bodo ; Wang, Ran ; Buchholz, Wolfgang ; Zhao, Zhongxiu

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