Using a threshold public good experiment, we examine how varying degrees of inequality in resources and differences in risk of loss among players affect the success of group efforts to avoid a common loss. We find that when the poor face greater risk than the rich, contributions and success in...

Recent survey evidence from the United States suggests that most Americans support domestic policies to address climate change, and this support is not conditional on other countries’ commitment levels. The finding is somewhat perplexing because climate change is by definition a collective...

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...

This paper investigates the interaction between consumers and producers in designing incentive mechanism for climate protection. Firms have material interests in building a moral reputation for those consumers who prefer buying from socially responsible firms. We examine optimal monetary...