Arbeitspapier
The welfare effects of persuasion and taxation: Theory and evidence from the field
How much information should governments reveal to consumers if consumption choices have uninternalized consequences to society? How does an alternative tax policy compare to information disclosure? We develop a price theoretic model of information design that allows empiricists to identify the welfare effects of any arbitrary information policy. Based on this model, we run a natural field experiment in cooperation with a large European appliance retailer and randomize information regarding the financial benefits of energy-efficient household lighting among more than 640,000 subjects. We find that full information disclosure strongly decreases demand for energy efficiency, while partial information disclosure increases demand. More information reduces social welfare because the increase in consumer surplus is outweighed by the rise in environmental externalities. By randomizing product prices, we identify the optimal tax vector as an alternative policy and show that sizable taxes on energy-inefficient products yield larger welfare gains than any information policy. We also document an important policy interaction: information provision dramatically reduces attention to pecuniary incentives and thereby limits the effectiveness of taxes.
- Sprache
-
Englisch
- Erschienen in
-
Series: ZEW Discussion Papers ; No. 20-019
- Klassifikation
-
Wirtschaft
Allocative Efficiency; Cost-Benefit Analysis
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
Taxation and Subsidies: Efficiency; Optimal Taxation
Energy: Demand and Supply; Prices
Energy: Government Policy
- Thema
-
persuasion
optimal taxation
internality taxes
field experiments
energy efficiency
behavioral public economics
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Rodemeier, Matthias
Löschel, Andreas
- Ereignis
-
Veröffentlichung
- (wer)
-
ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
- (wo)
-
Mannheim
- (wann)
-
2020
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Rodemeier, Matthias
- Löschel, Andreas
- ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
Entstanden
- 2020
Ähnliche Objekte (12)
The welfare effects of persuasion and taxation: Theory and evidence from the field
The Welfare Effects of Persuasion and Taxation: Theory and Evidence from the Field
European Green Deal und deutsche Energiewende zusammen denken!
Eine globale Bestandsaufnahme im Rampenlicht: Die COP28
Die Zukunft der Kohle in der Stromerzeugung in Deutschland: Eine umweltökonomische Betrachtung der öffentlichen Diskussion
Weltklimakonferenz in Durban: Über Inhalte einigen wir uns später
Deutsche Parallelveranstaltung? EU-Emissionshandel
Technological change in economic models of environmental policy: A survey
Technological change in economic models of environmental policy: a survey
The economic and environmental implications of the US repudiation of the Kyoto protocol and the subsequent deals in Bonn and Marrakech
The Economic and Environmental Implications of the US Repudiation of the Kyoto Protocol and the Subsequent Deals in Bonn and Marrakech
Market power in international emissions trading : the impact of U.S. withdrawal from the Kyoto Protocol
The welfare effects of persuasion and taxation: Theory and evidence from the field
The Welfare Effects of Persuasion and Taxation: Theory and Evidence from the Field
European Green Deal und deutsche Energiewende zusammen denken!
Eine globale Bestandsaufnahme im Rampenlicht: Die COP28
Die Zukunft der Kohle in der Stromerzeugung in Deutschland: Eine umweltökonomische Betrachtung der öffentlichen Diskussion
Weltklimakonferenz in Durban: Über Inhalte einigen wir uns später
Deutsche Parallelveranstaltung? EU-Emissionshandel
Technological change in economic models of environmental policy: A survey
Technological change in economic models of environmental policy: a survey
The economic and environmental implications of the US repudiation of the Kyoto protocol and the subsequent deals in Bonn and Marrakech
The Economic and Environmental Implications of the US Repudiation of the Kyoto Protocol and the Subsequent Deals in Bonn and Marrakech
Market power in international emissions trading : the impact of U.S. withdrawal from the Kyoto Protocol
The welfare effects of persuasion and taxation: Theory and evidence from the field
The Welfare Effects of Persuasion and Taxation: Theory and Evidence from the Field
European Green Deal und deutsche Energiewende zusammen denken!
Eine globale Bestandsaufnahme im Rampenlicht: Die COP28
Die Zukunft der Kohle in der Stromerzeugung in Deutschland: Eine umweltökonomische Betrachtung der öffentlichen Diskussion
Weltklimakonferenz in Durban: Über Inhalte einigen wir uns später
Deutsche Parallelveranstaltung? EU-Emissionshandel
Technological change in economic models of environmental policy: A survey
Technological change in economic models of environmental policy: a survey
The economic and environmental implications of the US repudiation of the Kyoto protocol and the subsequent deals in Bonn and Marrakech
The Economic and Environmental Implications of the US Repudiation of the Kyoto Protocol and the Subsequent Deals in Bonn and Marrakech