Article Accepted Manuscript

Why carbon taxes need to be high enough: on the (limited) negative compensatory effects of minimum contribution levels on voluntary pro-environmental behavior [Author Accepted Manuscript]

Author(s) / Creator(s)

Horsten, Luisa Katharina
Klein, Sina A.
Hilbig, Benjamin E.

Abstract / Description

In light of discussions revolving around whether carbon taxes undermine voluntary pro-environmental behavior or help raise summary contributions through forcing free-riders to contribute, the current paper investigates the effect of low vs high minimum contribution levels (MCLs) on pro-environmental behavior (PEB). We report two pre-registered, incentivized experiments (German samples, N1 = 228, N2 = 293) using the Greater Good Game, in which participants allocate an initial endowment either toward their own, or a shared group or an environment account. This paradigm allows crowding-out of PEB after the introduction of MCLs in a pro-social (non-selfish) fashion and thereby provides a viable option even to those who are dispositionally not inclined towards selfishness or free-riding. After introducing MCLs, we find that individuals do not fully negatively compensate for forced contributions to the environment account. Although voluntary contributions did decrease slightly after the introduction of either high or low MCLs, the decrease was comparable across both conditions. Consequently, a higher MCL yielded higher summary contributions. Thus, in forcing free-riders to contribute, a sufficiently large MCL is able to offset negative compensation of voluntary contributors. We conclude that the overall benefit for the environment is largest with a carbon tax high enough to surmount negative compensation.

Keyword(s)

pro-environmental behavior minimum contribution levels crowding-out free-riding

Persistent Identifier

Date of first publication

2025-11-25

Journal title

Global Environmental Psychology

Publisher

PsychArchives

Publication status

acceptedVersion

Review status

reviewed

Is version of

Citation

Horsten, L. K., Klein, S. A., & Hilbig, B. E. (in press). Why carbon taxes need to be high enough: on the (limited) negative compensatory effects of minimum contribution levels on voluntary pro-environmental behavior [Author Accepted Manuscript]. Global Environmental Psychology. https://doi.org/10.23668/psycharchives.21420
  • Author(s) / Creator(s)
    Horsten, Luisa Katharina
  • Author(s) / Creator(s)
    Klein, Sina A.
  • Author(s) / Creator(s)
    Hilbig, Benjamin E.
  • PsychArchives acquisition timestamp
    2025-11-25T18:43:46Z
  • Made available on
    2025-11-25T18:43:46Z
  • Date of first publication
    2025-11-25
  • Abstract / Description
    In light of discussions revolving around whether carbon taxes undermine voluntary pro-environmental behavior or help raise summary contributions through forcing free-riders to contribute, the current paper investigates the effect of low vs high minimum contribution levels (MCLs) on pro-environmental behavior (PEB). We report two pre-registered, incentivized experiments (German samples, N1 = 228, N2 = 293) using the Greater Good Game, in which participants allocate an initial endowment either toward their own, or a shared group or an environment account. This paradigm allows crowding-out of PEB after the introduction of MCLs in a pro-social (non-selfish) fashion and thereby provides a viable option even to those who are dispositionally not inclined towards selfishness or free-riding. After introducing MCLs, we find that individuals do not fully negatively compensate for forced contributions to the environment account. Although voluntary contributions did decrease slightly after the introduction of either high or low MCLs, the decrease was comparable across both conditions. Consequently, a higher MCL yielded higher summary contributions. Thus, in forcing free-riders to contribute, a sufficiently large MCL is able to offset negative compensation of voluntary contributors. We conclude that the overall benefit for the environment is largest with a carbon tax high enough to surmount negative compensation.
    en
  • Publication status
    acceptedVersion
  • Review status
    reviewed
  • Sponsorship
    This work was supported by funding from the German Research Foundation to the second and third author (DFG, grant numbers KL 3365/1-1 and HI 1600/7-1, respectively).
  • Citation
    Horsten, L. K., Klein, S. A., & Hilbig, B. E. (in press). Why carbon taxes need to be high enough: on the (limited) negative compensatory effects of minimum contribution levels on voluntary pro-environmental behavior [Author Accepted Manuscript]. Global Environmental Psychology. https://doi.org/10.23668/psycharchives.21420
  • ISSN
    2750-6630
  • Persistent Identifier
    https://hdl.handle.net/20.500.12034/16811
  • Persistent Identifier
    https://doi.org/10.23668/psycharchives.21420
  • Language of content
    eng
  • Publisher
    PsychArchives
  • Is version of
    https://doi.org/10.5964/gep.14833
  • Is related to
    https://doi.org/10.17605/osf.io/w46xn
  • Keyword(s)
    pro-environmental behavior
  • Keyword(s)
    minimum contribution levels
  • Keyword(s)
    crowding-out
  • Keyword(s)
    free-riding
  • Dewey Decimal Classification number(s)
    150
  • Title
    Why carbon taxes need to be high enough: on the (limited) negative compensatory effects of minimum contribution levels on voluntary pro-environmental behavior [Author Accepted Manuscript]
    en
  • DRO type
    article
  • Journal title
    Global Environmental Psychology
  • Visible tag(s)
    PsychOpen GOLD
  • Visible tag(s)
    Accepted Manuscript