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dc.contributor.authorUlph, David Tregear
dc.contributor.authorDaube, Marc Philip Klaus
dc.identifier.citationUlph , D T & Daube , M P K 2014 ' Moral behaviour, altruism and environmental policy ' School of Economics & Finance Discussion Paper , no. 1409 , University of St Andrews , pp. 1-24 .en
dc.identifier.otherPURE: 155751184
dc.identifier.otherPURE UUID: a4829b6d-5462-4082-b387-1264fa72d6e2
dc.identifier.otherORCID: /0000-0003-3171-1270/work/59464504
dc.descriptionThis work was supported by funding from the ESRCen
dc.description.abstractFree-riding is often associated with self-interested behaviour. However if there is a global mixed pollutant, free-riding will arise if individuals calculate that their emissions are negligible relative to the total, so total emissions and hence any damage that they and others suffer will be unaffected by whatever consumption choice they make. In this context consumer behaviour and the optimal environmental tax are independent of the degree of altruism. For behaviour to change, individuals need to make their decisions in a different way. We propose a new theory of moral behaviour whereby individuals recognise that they will be worse off by not acting in their own self-interest, and balance this cost off against the hypothetical moral value of adopting a Kantian form of behaviour, that is by calculating the consequences of their action by asking what would happen if everyone else acted in the same way as they did. We show that: (a) if individuals behave this way, then altruism matters and the greater the degree of altruism the more individuals cut back their consumption of a ’dirty’ good; (b) nevertheless the optimal environmental tax is exactly the same as that emerging from classical analysis where individuals act in self-interested fashion.
dc.publisherUniversity of St Andrews
dc.relation.ispartofseriesSchool of Economics & Finance Discussion Paperen
dc.rights(c) the author 2014en
dc.subjectClimate changeen
dc.subjectEnvironmental economicsen
dc.subjectEnvironmental taxen
dc.subjectMoral behaviouren
dc.subjectPro-social behaviouren
dc.subjectPublic goodsen
dc.subjectHB Economic Theoryen
dc.titleMoral behaviour, altruism and environmental policyen
dc.typeWorking or discussion paperen
dc.contributor.institutionUniversity of St Andrews.School of Economics and Financeen

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