Publication Details

Category Text Publication
Reference Category Journals
DOI 10.3390/su10082902
Licence creative commons licence
Title (Primary) A theory of optimal green defaults
Author Meran, G.; Schwarze, R.
Source Titel Sustainability
Year 2018
Department OEKON
Volume 10
Issue 8
Page From art. 2902
Language englisch
Keywords nudge; policy mix; behavioural heterogeneity; environmental taxes and subsidies
Abstract This paper develops an analytical framework for studying the Baumol–Oates efficiency of traditional single instrument abatement policies vis-à-vis green defaults in the face of price inertia and passive choice by subpopulations. In this special case of behavioural heterogeneity, command and control approaches can outperform price-based instruments while pure tax/subsidy schemes need to be adjusted in order to achieve politically desired levels of abatement. We also prove that choice-preserving nudges are superior to any single-instrument policy in this case. An average marginal abatement cost rule is developed to optimize the green defaults and traditional policies of standards and prices under different degrees of market rigidity.
Persistent UFZ Identifier
Meran, G., Schwarze, R. (2018):
A theory of optimal green defaults
Sustainability 10 (8), art. 2902 10.3390/su10082902