The effect of gain-loss framing on climate policy preferences

Research output: Contribution to journalJournal articlepeer-review

We designed a discrete choice experiment testing valence-based framing of climate policy outcomes for future generations, a moral good involving altruistic trade-offs. Specifically, we explore how a gain and loss framing influence social preferences for the distributional outcomes of climate policy. Respondents are asked to consider climate policy alternatives with two main outcomes affecting three regions of the world: Income effects for future generations caused by climate change, which the respondents may not be affected by, and a present generation co-benefit from mitigation efforts, which could benefit the respondents directly. Using a sample of the Danish population, we find a significant difference in the estimated preference structure for climate policies when future income effects are framed as losses in income for future generations relative to when framed as regained income. However, the welfare measures reveal that the framing did not generate significantly higher value estimates for the framed income effect attribute. Instead, the framing resulted in increased willingness to pay for additional climate policy initiatives per se, and higher value estimates for the unframed, present generation co-benefit. We interpret these results drawing on the behavioural science and economic literature on framing and reference point dependent preferences.

Original languageEnglish
Article number107009
JournalEcological Economics
Volume185
Number of pages12
ISSN0921-8009
DOIs
Publication statusPublished - 2021

    Research areas

  • Attribute level framing, Choice experiment, Climate policy, Social preferences, Valence-based framing

ID: 269598849