The complementary of low taxes and pro-social guidelines when polluters have moral preferences
Resumen:
We present the results of a series of public-bad laboratory experiments in which we assess whether a salient message suggesting pro-social behavior with an implicit moral appeal, and a tax that is insufficient to induce the optimal level of the externality, can complement each other when implemented jointly. Our results suggest that, on average, (a) behavior is consistent with subjects having moral preferences, (b) a salient message suggesting pro-social behavior can be effective, (c) preferences are nonseparable from the choice of instrument (i.e, the tax crowds-out part of the subjects´ moral preferences), and crucially, (d) the tax and the informative message do not complement each other. The tax has a greater impact on reducing the externality than the prosocial guideline, even though the tax was only half of that needed to reach the socially optimal level. Nevertheless, when implemented together, the total effect of both instruments is similar to that of the tax alone. This result is stronger for those subjects that are more “nudgeable” by the prosocial guideline. These results challenge the policy recommendation that nudges can effectively complement low taxes while awaiting the political will to raise them.
| 2025 | |
| Funding for this study came from Agencia Nacional de Investigación e Innovación (ANII), grants FCE_1_2019_1_156336 and POS_FCE_2020_1_1009209. Chávez acknowledges partial funding by ANID/FONDAP/1523A0007 and project Fondecyt Regular 1230266. | |
|
Economic experiment Nudge Prosocial guideline Public bad Tax |
|
| Inglés | |
| Universidad de Montevideo | |
| REDUM | |
| https://hdl.handle.net/20.500.12806/2743 | |
| Acceso abierto | |
| Attribution-NonCommercial-NoDerivatives 4.0 Internacional |
| _version_ | 1877841213155966976 |
|---|---|
| author | Caffera, Marcelo |
| author2 | Chávez, Carlos López, Carolina Murphy, James J. Briozzo, Juan |
| author2_role | author author author author |
| author_facet | Caffera, Marcelo Chávez, Carlos López, Carolina Murphy, James J. Briozzo, Juan |
| author_role | author |
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| bitstream.checksumAlgorithm.fl_str_mv | MD5 MD5 MD5 MD5 MD5 |
| bitstream.url.fl_str_mv | http://redum.um.edu.uy/bitstream/20.500.12806/2743/1/Prices%20%2b%20Nudges%20-%20JEEM%202025.pdf http://redum.um.edu.uy/bitstream/20.500.12806/2743/2/license_rdf http://redum.um.edu.uy/bitstream/20.500.12806/2743/3/license.txt http://redum.um.edu.uy/bitstream/20.500.12806/2743/4/Prices%20%2b%20Nudges%20-%20JEEM%202025.pdf.txt http://redum.um.edu.uy/bitstream/20.500.12806/2743/5/Prices%20%2b%20Nudges%20-%20JEEM%202025.pdf.jpg |
| collection | REDUM |
| dc.contributor.filiacion.es.fl_str_mv | Caffera, Marcelo. Universidad de Montevideo, Uruguay Chávez, Carlos. Universidad de Talca, Chile López, Carolina. Universidad de Montevideo, Uruguay Murphy, James J. University of Alaska Anchorage, USA Briozzo, Juan. Universidad de Montevideo, Uruguay |
| dc.creator.none.fl_str_mv | Caffera, Marcelo Chávez, Carlos López, Carolina Murphy, James J. Briozzo, Juan |
| dc.date.accessioned.none.fl_str_mv | 2025-07-24T17:25:02Z |
| dc.date.available.none.fl_str_mv | 2025-07-24T17:25:02Z |
| dc.date.issued.es.fl_str_mv | 2025 |
| dc.description.abstract.none.fl_txt_mv | We present the results of a series of public-bad laboratory experiments in which we assess whether a salient message suggesting pro-social behavior with an implicit moral appeal, and a tax that is insufficient to induce the optimal level of the externality, can complement each other when implemented jointly. Our results suggest that, on average, (a) behavior is consistent with subjects having moral preferences, (b) a salient message suggesting pro-social behavior can be effective, (c) preferences are nonseparable from the choice of instrument (i.e, the tax crowds-out part of the subjects´ moral preferences), and crucially, (d) the tax and the informative message do not complement each other. The tax has a greater impact on reducing the externality than the prosocial guideline, even though the tax was only half of that needed to reach the socially optimal level. Nevertheless, when implemented together, the total effect of both instruments is similar to that of the tax alone. This result is stronger for those subjects that are more “nudgeable” by the prosocial guideline. These results challenge the policy recommendation that nudges can effectively complement low taxes while awaiting the political will to raise them. |
| dc.description.sponsorship.none.fl_txt_mv | Funding for this study came from Agencia Nacional de Investigación e Innovación (ANII), grants FCE_1_2019_1_156336 and POS_FCE_2020_1_1009209. Chávez acknowledges partial funding by ANID/FONDAP/1523A0007 and project Fondecyt Regular 1230266. |
| dc.format.extent.es.fl_str_mv | 31 p. |
| dc.format.mimetype.es.fl_str_mv | text/plain |
| dc.identifier.uri.none.fl_str_mv | https://hdl.handle.net/20.500.12806/2743 |
| dc.language.iso.none.fl_str_mv | eng |
| dc.publisher.es.fl_str_mv | Universidad de Montevideo, Facultad de Ciencias Empresariales y Economía |
| dc.rights.es.fl_str_mv | Abierto |
| dc.rights.license.none.fl_str_mv | Attribution-NonCommercial-NoDerivatives 4.0 Internacional |
| dc.rights.none.fl_str_mv | info:eu-repo/semantics/openAccess |
| dc.rights.uri.*.fl_str_mv | http://creativecommons.org/licenses/by-nc-nd/4.0/ |
| dc.source.none.fl_str_mv | reponame:REDUM instname:Universidad de Montevideo instacron:Universidad de Montevideo |
| dc.subject.keyword.es.fl_str_mv | Economic experiment Nudge Prosocial guideline Public bad Tax |
| dc.title.none.fl_str_mv | The complementary of low taxes and pro-social guidelines when polluters have moral preferences |
| dc.type.es.fl_str_mv | Reporte técnico |
| dc.type.none.fl_str_mv | info:eu-repo/semantics/report |
| dc.type.version.es.fl_str_mv | Aceptada |
| dc.type.version.none.fl_str_mv | info:eu-repo/semantics/acceptedVersion |
| description | Funding for this study came from Agencia Nacional de Investigación e Innovación (ANII), grants FCE_1_2019_1_156336 and POS_FCE_2020_1_1009209. Chávez acknowledges partial funding by ANID/FONDAP/1523A0007 and project Fondecyt Regular 1230266. |
| eu_rights_str_mv | openAccess |
| format | report |
| id | REDUM_4785373345f29aa42edf924d2bcef4e1 |
| instacron_str | Universidad de Montevideo |
| institution | Universidad de Montevideo |
| instname_str | Universidad de Montevideo |
| language | eng |
| network_acronym_str | REDUM |
| network_name_str | REDUM |
| oai_identifier_str | oai:redum.um.edu.uy:20.500.12806/2743 |
| publishDate | 2025 |
| reponame_str | REDUM |
| repository.mail.fl_str_mv | nolascoaga@um.edu.uy |
| repository.name.fl_str_mv | REDUM - Universidad de Montevideo |
| repository_id_str | 10501 |
| rights_invalid_str_mv | Attribution-NonCommercial-NoDerivatives 4.0 Internacional Abierto http://creativecommons.org/licenses/by-nc-nd/4.0/ |
| spelling | Attribution-NonCommercial-NoDerivatives 4.0 InternacionalAbiertohttp://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/openAccess29379aa7-bd77-483a-9074-54df31de362e9b42c627-a3c8-425f-a478-23a2f0ec67007f8b9232-c413-441d-b606-461cf11973295a8dd638-53fc-4403-9a86-40dbc3aa0a4b08db96aa-852c-4e38-87e5-c4e26ffe206eCaffera, Marcelo. Universidad de Montevideo, UruguayChávez, Carlos. Universidad de Talca, ChileLópez, Carolina. Universidad de Montevideo, UruguayMurphy, James J. University of Alaska Anchorage, USABriozzo, Juan. Universidad de Montevideo, Uruguay2025-07-24T17:25:02Z2025-07-24T17:25:02Z2025https://hdl.handle.net/20.500.12806/2743Funding for this study came from Agencia Nacional de Investigación e Innovación (ANII), grants FCE_1_2019_1_156336 and POS_FCE_2020_1_1009209. Chávez acknowledges partial funding by ANID/FONDAP/1523A0007 and project Fondecyt Regular 1230266.We present the results of a series of public-bad laboratory experiments in which we assess whether a salient message suggesting pro-social behavior with an implicit moral appeal, and a tax that is insufficient to induce the optimal level of the externality, can complement each other when implemented jointly. Our results suggest that, on average, (a) behavior is consistent with subjects having moral preferences, (b) a salient message suggesting pro-social behavior can be effective, (c) preferences are nonseparable from the choice of instrument (i.e, the tax crowds-out part of the subjects´ moral preferences), and crucially, (d) the tax and the informative message do not complement each other. The tax has a greater impact on reducing the externality than the prosocial guideline, even though the tax was only half of that needed to reach the socially optimal level. Nevertheless, when implemented together, the total effect of both instruments is similar to that of the tax alone. This result is stronger for those subjects that are more “nudgeable” by the prosocial guideline. These results challenge the policy recommendation that nudges can effectively complement low taxes while awaiting the political will to raise them.31 p.text/plainengUniversidad de Montevideo, Facultad de Ciencias Empresariales y EconomíaThe complementary of low taxes and pro-social guidelines when polluters have moral preferencesReporte técnicoAceptadainfo:eu-repo/semantics/acceptedVersioninfo:eu-repo/semantics/reportEconomic experimentNudgeProsocial guidelinePublic badTaxreponame:REDUMinstname:Universidad de Montevideoinstacron:Universidad de MontevideoCaffera, MarceloChávez, CarlosLópez, CarolinaMurphy, James J.Briozzo, JuanORIGINALPrices + Nudges - JEEM 2025.pdfPrices + Nudges - JEEM 2025.pdfapplication/pdf1055639http://redum.um.edu.uy/bitstream/20.500.12806/2743/1/Prices%20%2b%20Nudges%20-%20JEEM%202025.pdf440b5d7402ccce6babd39ce6e5838dceMD51CC-LICENSElicense_rdflicense_rdfapplication/rdf+xml; charset=utf-8805http://redum.um.edu.uy/bitstream/20.500.12806/2743/2/license_rdf4460e5956bc1d1639be9ae6146a50347MD52LICENSElicense.txtlicense.txttext/plain; charset=utf-82117http://redum.um.edu.uy/bitstream/20.500.12806/2743/3/license.txt691ed290c8bf8671811a9242b7fc04b6MD53TEXTPrices + Nudges - JEEM 2025.pdf.txtPrices + Nudges - JEEM 2025.pdf.txtExtracted texttext/plain83081http://redum.um.edu.uy/bitstream/20.500.12806/2743/4/Prices%20%2b%20Nudges%20-%20JEEM%202025.pdf.txt3ed8017f7ea8a0fedcd790ba1bdb517fMD54THUMBNAILPrices + Nudges - JEEM 2025.pdf.jpgPrices + Nudges - JEEM 2025.pdf.jpgGenerated Thumbnailimage/jpeg1465http://redum.um.edu.uy/bitstream/20.500.12806/2743/5/Prices%20%2b%20Nudges%20-%20JEEM%202025.pdf.jpg4895ce6560d3e1aa88e1b92ea630098eMD5520.500.12806/27432025-07-25 09:39:51.992oai:redum.um.edu.uy:20.500.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Institucionalhttps://redum.um.edu.uy/Universidadhttps://um.edu.uy/https://redum.um.edu.uy/oai/requestnolascoaga@um.edu.uyUruguayopendoar:105012025-07-25T12:39:51REDUM - Universidad de Montevideofalse |
| spellingShingle | The complementary of low taxes and pro-social guidelines when polluters have moral preferences Caffera, Marcelo Economic experiment Nudge Prosocial guideline Public bad Tax |
| status_str | acceptedVersion |
| title | The complementary of low taxes and pro-social guidelines when polluters have moral preferences |
| title_full | The complementary of low taxes and pro-social guidelines when polluters have moral preferences |
| title_fullStr | The complementary of low taxes and pro-social guidelines when polluters have moral preferences |
| title_full_unstemmed | The complementary of low taxes and pro-social guidelines when polluters have moral preferences |
| title_short | The complementary of low taxes and pro-social guidelines when polluters have moral preferences |
| title_sort | The complementary of low taxes and pro-social guidelines when polluters have moral preferences |
| topic | Economic experiment Nudge Prosocial guideline Public bad Tax |
| url | https://hdl.handle.net/20.500.12806/2743 |