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Clean substitutes and the effectiveness of Carbon Footprint Labels vs. Pigovian Subsidies: Evidence from a Field Experiment
(2014)CIES Research PaperWe study how substitutability between clean and dirty alternatives affects the effectiveness of environmental regulation in a field experiment that controls for the choice set of respondents. We consider four product categories with clean and dirty alternatives: (i) cola products in plastic bottles vs. in aluminum cans; (ii) skimmed vs. whole milk; (iii) chicken meat vs. beef meat; and (iv) margarine vs. butter. We employ two neutrally ...Working Paper