Arbeitspapier
Collective minimum contributions to counteract the ratchet effect in the voluntary provision of public goods
We experimentally test a theoretically promising amendment to the ratchet-up mechanism of the Paris Agreement. The ratchet-up mechanism prescribes that parties' commitments to the global response to climate change cannot decrease over time and our results confirm that its effect is detrimental. We design a public goods game to study whether an amendment to the mechanism that stipulates all agents to contribute at least a collective minimum to the public good which is based on the principle of the lowest common denominator promotes cooperation. We find that binding collective minimum contributions improve the effectiveness of the ratchet-up mechanism. Non-binding minimum contributions, in contrast, do not foster cooperation. Our data reveal conditional cooperative dynamics to explain the difference. If other participants contribute less than the collective minimum contributions, even initially cooperative participants start to negatively reciprocate such a form of non-compliance by contributing less.
- Language
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Englisch
- Bibliographic citation
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Series: ZEW Discussion Papers ; No. 22-053
- Classification
-
Wirtschaft
Noncooperative Games
Design of Experiments: Laboratory, Group Behavior
Public Goods
- Subject
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global public goods
climate change
institutions
ratchet-up mechanism
minimum contributions
laboratory experiment
- Event
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Geistige Schöpfung
- (who)
-
Alt, Marius
Gallier, Carlo
Kesternich, Martin
Sturm, Bodo
- Event
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Veröffentlichung
- (who)
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ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
- (where)
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Mannheim
- (when)
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2022
- Handle
- Last update
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10.03.2025, 11:45 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Alt, Marius
- Gallier, Carlo
- Kesternich, Martin
- Sturm, Bodo
- ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
Time of origin
- 2022
Other Objects (12)
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Determinants of the Voluntary Provision of Public Goods: Experimental Investigations
Leaders as role models for the voluntary provision of public goods
Leaders as Role Models for the Voluntary Provision of Public Goods
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Collective minimum contributions to counteract the ratchet effect in the voluntary provision of public goods
Mandatory minimum contributions, heterogenous endowments and voluntary public-good provision
On collective goods, voluntary contributions, and fundraising
Voluntary service provision in a strong welfare state
Collective reputation, entry and minimum quality standard
Determinants of the voluntary provision of public goods : experimental investigations
Heterogeneous productivity in voluntary public good provision: An experimental analysis
Heterogeneous Productivity in Voluntary Public Good Provision: An Experimental Analysis
Determinants of the Voluntary Provision of Public Goods: Experimental Investigations
Leaders as role models for the voluntary provision of public goods
Leaders as Role Models for the Voluntary Provision of Public Goods