Voluntary Climate Action Research Articles

General public takes up counterintuitive expert advice on effective climate action

Individual voluntary climate action could contribute to closing the gap between global emission targets and the instruments in place. However, complex regulatory frameworks make it difficult for individuals to understand which actions align with their goals. Expert advice might provide guidance, but it is not trivial how detailed the advice should be. In a large consequential choice experiment with five informational load conditions, this paper uses the voluntary cancellation of European Union Allowances as an application to narrow down a minimum amount of information required to induce effective actions. We find a clear pattern of advice being processed and followed, even if it includes a demanding level of detail and counters prior convictions. Moreover, a mere assertion is highly effective already. These results are good news for efforts to increase the effectiveness of voluntary climate action.

Firms’ voluntary climate action disclosures and stock market reaction: A BERT-based analysis of earnings conference calls in China

Climate information disclosure plays a pivotal role in fostering sustainable practices and enhancing transparency in climate risk. However, it is unclear whether firms’ voluntary climate-related disclosures effectively convey incremental information to investors. In the empirical context of Chinese listed firms, we explore the valuation effect of firms’ voluntary climate action disclosures, which is quantified from the transcripts of earning conference calls using a novel natural language model, BERT. Our results reveal that firms with more voluntary climate action disclosures experience more positive stock market reactions, indicating that investors value transparency on corporate commitment to future climate actions. The positive valuation effect of disclosures tends to be more pronounced in firms with higher disclosure quality, more green-preference investors, and higher investor attention. Moreover, we find that the positive valuation effect is achieved through enhancing corporate reputation and investor confidence. We further show that firms’ voluntary climate action disclosures exhibit a significant positive correlation with green innovations and environmental pillar scores, dispelling concerns of mere “greenwashing”. Overall, our evidence contributes to understanding the role of climate disclosures in investor assessment of firms’ climate risks and opportunities. The findings provides fresh insights for policymakers and regulatory bodies involved in shaping disclosure frameworks that promote sustainable business practices.

Complexity and Learning Effects in Voluntary Climate Action: Evidence from a Field Experiment

Complexity and Learning Effects in Voluntary Climate Action: Evidence from a Field Experiment

Boosting voluntary climate action in Aotearoa New Zealand

Boosting voluntary climate action in Aotearoa New Zealand

Do Emerging Trends in Climate Litigation Signal a Potential Cause of Action in Negligence against Corporations by the Australian Public?

Abstract Over the past two decades a global jurisprudential trend of domestic climate litigation against governments and companies has emerged. One avenue for litigation against these entities is tort law. The tort of negligence could provide access to compensation for aggrieved individuals and groups. Using the example of Australia, this article discusses whether the emergence of climate tort cases, an increasing drive to hold corporations responsible for climate change, and a company focus on voluntary climate action, could lead to the emergence of a new duty of care by corporate actors toward non-shareholders. We highlight opportunities and barriers to the further development of negligence law as a cause of action against corporations for harms related to climate change.

Large but diminishing effects of climate action nudges under rising costs.

Behavioural public policy has received broad research attention, particularly in the domain of motivating pro-environmental behaviours. We investigate how far the efficacy of arguably one the most popular behavioural policy tools (green 'default change' nudges) depends on the associated cost. On the basis of a field study involving carbon offsets for over 30,000 flights booked by more than 11,000 airline customers, we show that green defaults have a large effect on voluntary climate action, even when several hundreds of Euros are at stake. The effect fully vanishes only as costs approach approximately €800.

Climate Action for (My) Children

How do we motivate cooperation across the generations—between parents and children? Here we study voluntary climate action (VCA), which is costly to today’s decision-makers but essential to enable sustainable living for future generations. We predict that “offspring observability” is critical: parents will be more likely to invest in VCA when their own offspring observes their action, whereas when adults or genetically unrelated children observe them, the effect will be smaller. In a large-scale lab-in-the-field experiment, we observe a remarkable magnitude of VCA: parents invest 82% of their 69€ endowment into VCA, resulting in almost 14,000 real trees being planted. Parents’ VCA varies across conditions, with the largest treatment effect occurring when a parent’s own child is the observer. In subgroup analyses, we find that larger treatment effects occur among parents with a high school diploma. Moreover, VCA for parents who believe in climate change is most affected by the presence of their own child. In contrast, VCA of climate change skeptical parents is most influenced by the presence of children to whom they are not related. Our findings have implications for policy-makers interested in designing programs to encourage voluntary climate action and sustaining intergenerational public goods.

Climate Action for (My) Children

Sustaining large-scale public goods, such as the environment, requires individuals to take action; however, motivating voluntary climate action (VCA) is difficult because decision-makers today do not stand to benefit from their investments. Here, we propose that parents invest more in VCA if their link to future generations—through their offspring—is made salient. In a novel lab-in-the-field experiment, we vary whether parents are observed during a VCA decision (i.e., investing in planting real-world trees) by their own child. In addition to a no-observer control, we run additional control conditions with an unrelated adult or an unrelated child observing the parent decision-maker. As predicted, VCA varies across conditions, with larger treatment effects occurring when a parent’s own child is the observer. In subgroup analyses, larger treatment effects occur among more educated parents. As a result of this study, VCA across conditions led to 14,000 trees being plant-ed, offsetting approximately 8% of participants’ annual CO2 emissions for around four generations.

The Paris Agreement and the Prospects for Socialization into the Climate Norm: Lessons from the U.S. and China

The Paris Agreement made a breakthrough amid the deadlock in climate negotiations, yet concerns are raised regarding how much impact the new voluntary climate regime can make. This paper investigates the socialization mechanism that the Paris Agreement sets up and explores the prospects of “institutional transformation” for it to make a dent. It examines the factors that can facilitate voluntary climate action by using the cases of the most recalcitrant emitters, the United States and China. It argues that the US and China cases suggest that the socialization from the bottom-up by domestic actors may be one of the critical elements that determine states’ position on climate change.

How much can we learn about voluntary climate action from behavior in public goods games?

Evidence from public goods game experiments holds the promise of informing climate change policies. To fulfill this promise, such evidence needs to demonstrate generalizability to this specific policy context. This paper examines whether and under which conditions behavior in public goods games generalizes to decisions about voluntary climate actions. We observe each participant in two different decision tasks: a real giving task in which contributions are used to directly reduce CO2 emissions and an abstract public goods game. Through treatment variations in this within-subjects design, we explore two factors that are candidates for affecting generalizability: the structural resemblance of contribution incentives between the tasks and the role of the subject pool, students and non-students. Our findings suggest that cooperation in public goods games is only weakly linked to voluntary climate actions and not in a uniform way. For a standard set of parameters, behavior in both tasks is uncorrelated. Greater structural resemblance of the public goods game with the context of climate change mitigation produces more sizable correlations, especially for student subjects.

Voluntary climate action and credible regulatory threat: evidence from the carbon disclosure project

This paper examines the role that the U.S. Environmental Protection Agency’s introduction of the Clean Power Plan played in voluntary carbon disclosure by the Global 500 firms during 2011–2015. Results from difference-in-difference-in-differences estimators nested in a two-stage endogenous binary-variable model—which accounts for the correlation between a firm’s participation and intensity of participation—show that U.S.-based firms acted preemptively in anticipation of a more stringent regulatory environment. Regardless of country of origin, among firms making voluntary disclosures, the Clean Power Plan was associated with higher levels of carbon disclosure in firms with favorable management structures and practices involving the agency of corporate management, ceteris paribus. Empirical analysis includes controls for firm size, natural gas prices, sector-specific market pressures, and macro-economic and political economy dynamics. Results are robust to alternative specifications, including a trimmed matching sample, the Heckman selection model, and sector-specific regressions.

Online Appendix for 'Voluntary Climate Action and Credible Regulatory Threat: Evidence from the Carbon Disclosure Project'

This paper examines the role that the U.S. Environmental Protection Agency’s introduction of the Clean Power Plan played in voluntary carbon disclosure by the Global 500 firms during 2011-2015. Results from difference-in-differences and difference-in-difference-in-differences estimators nested in a two-stage endogenous binary-variable model — which accounts for the correlation between a firm’s participation and intensity of participation — show that U.S.-based firms acted preemptively in anticipation of a more stringent regulatory environment. Regardless of country of origin, among firms making voluntary disclosures, the Clean Power Plan was associated with higher levels of carbon disclosure in firms with favorable management structures and practices involving the agency of corporate management, ceteris paribus. Empirical analysis includes controls for firm size, natural gas prices, sector-specific market pressures, and macro-economic and political economy dynamics. Results are robust to alternative specifications, including a trimmed matching sample, the Heckman selection model, and sector-specific regressions.

Flying with climate liability? Economic valuation of voluntary carbon offsets using forced choices

This study aims to examine how key aspects of voluntary climate action influence economic values of aviation carbon offsets using an Australian case study, where voluntary carbon offset programs for the aviation sector were active under a carbon tax between July 01, 2012 and July 17, 2014. An online survey was administered during the period using choice experiments. This rare and short-lived Australian experience is useful to gain insights into how individuals respond to the new public policy in terms of the perceived economic value of voluntary offsets for air travel. According to the estimation results, supporters of the mandatory tax policy held a welfare value of voluntary carbon offsets for their domestic flights that is three times larger than non-supporters (i.e., $AU27.83 vs. $AU9.40). It is $AU12.27 on average per ton of carbon offsets per person for domestic flights and $AU0.92 for international long-haul flights. The findings endorse that individuals seem to attach personal responsibility for carbon emissions (i.e. climate liability or carbon conscience) to frequent domestic flights, but not so much to intercontinental flights. Furthermore, reported flight frequencies by respondents did not place any significant impact on economic values of voluntary carbon offsets in both domestic and international frameworks. A coupled approach between forced choices and certainty responses was adapted, where no-choice options were retrieved, potentially improving choice experiments. Results suggest that airlines should consider simplifying their carbon offset programs to fixed levels (e.g. £3, £10, and £20 as in the case of British Airways), regardless of geographical boundaries, while governments should promote both mandatory and voluntary climate measures in tandem.

What Explains Participation and Effort in Voluntary Climate Action by Businesses?: Evidence from the Carbon Disclosure Project

This paper analyzes the extensive and intensive margins of participation in the Carbon Disclosure Project by the Global 500. Empirical results based on the Double Hurdle model suggest that the existence of a senior manager with direct responsibility for climate change is associated with higher participation. Firms that have integrated climate change risks into their business operations are associated with higher levels of carbon disclosure. I exploit President Obama’s announcements of executive actions on climate change, which increased the likelihood of climate change regulation in the U.S., using a triple-differences model. Results from difference-in-difference-in-differences models suggest that U.S. firms were more likely to participate and engaged in higher levels of carbon disclosure relative to other firms. Adoption of a climate strategy and emissions targets increased the probability of voluntary carbon disclosure by U.S. companies albeit these firms were overall less likely to disclose their carbon emissions compared to non-U.S. firms.

Transnational Climate Governance and the Global 500: Examining Private Actor Participation by Firm-Level Factors and Dynamics

ABSTRACTThis article focuses on the Global 500, which are the world’s largest companies by revenue, to examine the factors and dynamics internal to companies that motivate some corporations, but not others, to engage in transnational climate governance. Empirical results based on multilevel mixed-effects analyses, which separately identify the relative weight of firm and country-level factors, suggest that the likelihood that a firm participates in transnational climate governance (TCG) is higher when there exists a “policy supporter” who champions sustainability policies and when a company adopts explicit sustainability practices, such as the incorporation of ESG (Environmental, Social and Governance) principles. Voluntary climate action and carbon disclosure are more likely to take place when a company has a large asset base and certifies with the ISO 14001 environmental management standard. Moreover, the level of civil liberties that corporations enjoy in their respective country of origin is associated with participation in TCG. A decomposition of the variance indicates that firm-level factors account for a majority of the variance in TCG participation. This study has implications for climate change governance and policies, which have increasingly focused on concrete climate solutions and innovations by nonstate and substate actors.

Transnational Climate Governance and the Global 500: Examining Private Actor Participation by Firm-Level Factors and Dynamics

In recent decades, businesses have participated in transnational climate governance (TCG) to share information, promote market mechanisms, and to set carbon emission reduction targets. This paper focuses on the Global 500, which are the world’s largest companies by revenue, to examine the factors and dynamics internal to companies that motivate some corporations, but not others, to engage in TCG. Empirical results based on multilevel mixed effects analyses, which separately identify the relative weight of firm and country-level factors, suggest that the likelihood that a firm participates in TCG is higher when it employs a large number of workers, has an explicit sustainability focus, and when there exists a “policy supporter” who champions sustainability policies and practices. Voluntary climate action and carbon disclosure are more likely to take place, along with a higher quality of carbon disclosure when the corporate actor invests in environmental R&D and/or certifies with the ISO 14001 environmental management standard. Moreover, the level of civil liberties that corporate actors enjoy in their respective country of origin is correlated with proactive climate action and carbon disclosure. This study has implications for climate change governance and policies, which have increasingly focused on concrete climate solutions and innovations by non-state and sub-state actors.

What Do We Learn from Public Good Games About Voluntary Climate Action? Evidence from an Artefactual Field Experiment

Evidence from public good game experiments holds the promise of instructive and cost-effective insights to inform environmental policy-making, for example on climate change mitigation. To fulfill the promise, such evidence needs to demonstrate generalizability to the specific policy context. This paper examines whether and under which conditions such evidence generalizes to voluntary mitigation decisions. We observe each participant in two different decision tasks: a real giving task in which contributions are used to directly reduce CO2 emissions and a public good game. Through two treatment variations, we explore two potential shifters of generalizability in a within-subjects design: the structural resemblance of contribution incentives between the tasks and the role of the subject pool, students and non-students. Our findings suggest that cooperation in public good games is linked to voluntary mitigation behavior, albeit not in a uniform way. For a standard set of parameters, behavior in both tasks is uncorrelated. Greater structural resemblance of the public goods game leads to sizable correlations, especially for student subjects.

A Mediation Model of Air Travelers’ Voluntary Climate Action

This study developed a behavioral model of intentions to purchase aviation carbon offsets, and tested the model through structural equation models. The model draws on the established hierarchical models of human behavior to hypothesize relationships between general and specific attitudes as predictors of offsetting intentions. The New Ecological Paradigm scale, the theory of planned behavior and variables from past literature were employed to measure general environmental attitudes, intermediate beliefs, and behavior-specific attitudes and norms. The current research represents a first attempt to build a theoretical model that helps to understand the relationships between factors that determine whether people will purchase aviation carbon offsets. The results show that a more positive orientation toward the environment could be an important predictor of environmental intentions operating both directly on intentions as well as guiding beliefs that relate to intentions. Policy implications of the findings are discussed, encouraging greater voluntary climate action.

An experimental study to explore WTP for aviation carbon offsets: the impact of a carbon tax on the voluntary action

As Australia recently introduced a mandatory carbon price, this paper provides a rare perspective of how such institutional changes influence consumer preferences for voluntary climate action. When examined using three contingent valuation questions, the results show that the compliance mechanism induces a substantial reduction in the number of air travellers who are willing to pay extra for voluntary carbon offsets and in the payment amount, although the crowding-out effect is incomplete. A disproportionately larger welfare benefit is attached to the carbon offsets for a domestic flight than its international counterpart. Overall empirical findings advocate the continued role of voluntary programmes.

Willingness to pay for flying carbon neutral in Australia: an exploratory study of offsetter profiles

Although voluntary carbon offsets have played a key role in the response to addressing climate change in the aviation sector, little is known about consumer preferences for such offsets and their offsetting behaviour in Australia. This paper developed and applied a choice modelling study to measure the economic values of aviation carbon mitigation and to identify major factors influencing air travellers’ voluntary climate action. Results show that respondents have a mean willingness to pay (WTP) of AU$21.38 per tonne of CO2 reduced in the form of voluntary carbon offsets per person. Female travellers might have a higher economic value of carbon mitigation than male counterparts while climate sceptics who are less likely to be carbon offsetters might in fact hold a higher WTP value than non-sceptical travellers. The findings suggest that in terms of WTP the best profile of offset projects might be renewable energy projects in developing countries, of which resulting carbon credits can reduce company legal liabilities. Positive support was found for mitigation measures by airlines, with technological efficiencies more strongly supported than operational practices and biofuels. This paper challenges previous understandings of environmentally motivated behaviour, and notes that behaviour profiles are still evolving.