Arbeitspapier

On Strategic Ignorance of Environmental Harm and Social Norms

Are people strategically ignorant of the negative externalities their activities cause the environment? Herein we examine if people avoid costless information on those externalities and use ignorance as an excuse to reduce pro-environmental behavior. We develop a theoretical framework in which people feel guilt from causing harm to the environment (e.g., emitting carbon dioxide) and from deviating from the social norm for pro-environmental behavior (e.g., offsetting carbon emissions). Our model predicts that people may benefit from avoiding information on their harm to the environment, and that they use ignorance as an excuse to engage in less pro-environmental behavior. It also predicts that the cost of ignorance increases if people can learn about the social norm from the information. We test the model predictions empirically with an experiment that involves an imaginary long- distance flight and an option to buy offsets for the flight's carbon footprint. More than half (53 percent) of the subjects choose to ignore information on the carbon footprint alone before deciding their offset purchase, but ignorance significantly decreases (to 29 percent) when the information additionally reveals the social norm, namely the share of air travelers who buy carbon offsets. We find evidence that some people use ignorance as an excuse to reduce pro-environmental behavior— ignorance significantly decreases the probability of buying carbon offsets.

Language
Englisch

Bibliographic citation
Series: Working Paper ; No. 2013:22

Classification
Wirtschaft
Criteria for Decision-Making under Risk and Uncertainty
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
Subject
Behavioral
Decision Making
Externality
Ignorance
Social norms

Event
Geistige Schöpfung
(who)
Thunström, Linda
van 't Veld, Klaas
Shogren, Jason F.
Nordström, Jonas
Event
Veröffentlichung
(who)
Lund University, School of Economics and Management, Department of Economics
(where)
Lund
(when)
2013

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Thunström, Linda
  • van 't Veld, Klaas
  • Shogren, Jason F.
  • Nordström, Jonas
  • Lund University, School of Economics and Management, Department of Economics

Time of origin

  • 2013

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