Voluntary Emission Reductions, Social Rewards, and Environmental Policy
Data
01.01.1997
01.01.1997
Autori
Michael Rauscher
Codice JEL
A13,H30,Q28
A13,H30,Q28
Publisher
Climate Change and Sustainable Development
Climate Change and Sustainable Development
Editor
Carlo Carraro
Carlo Carraro
Social norms and intrinsic motivations lead to voluntary environmentally responsible behaviour even in the absence of environmental policy. The paper shows that the introduction of environmental policy may lead to a reduction of voluntary abatement and sometimes may increase emissions and environmental damage. The explanation is that voluntary abatement is socially rewarded and the reward depends on the general attitude of society towards voluntary abatement. So, if the government tightens environmental standards, the voluntary component of abatement is reduced and the social reward is negatively affected. Some considerations concerning optimal environmental policies are discussed towards the end of the paper.