Publication Date:
2014-01-22
Description:
Using a design characterized by heterogeneous firms and stochastic ambient pollution, this study explores how results from ambient tax experiments with student subjects translate to a richer field context with dairy farmers in Upstate New York. Results suggest that the ambient tax induces group-level compliance among students and farmers. However, relative to students, farmers operating "small" firms pollute less and farmers operating "large" firms tend to pollute more. Deviations from theory among farmers are tied to beliefs about the impacts of farming on water pollution, as well as knowledge of neighbors’ pollution. This study highlights the importance of framed field experiments in the policy test-bedding process.
Keywords:
C91 - Laboratory, Individual Behavior, C92 - Laboratory, Group Behavior, H23 - Externalities
;
Redistributive Effects
;
Environmental Taxes and Subsidies, Q52 - Pollution Control Costs
;
Distributional Effects
;
Employment Effects, Q53 - Air Pollution
;
Water Pollution
;
Noise
;
Hazardous Waste
;
Solid Waste
;
Recycling, Q58 - Government Policy
Print ISSN:
0002-9092
Electronic ISSN:
1467-8276
Topics:
Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition
,
Economics
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