Åsa Löfgren

Paying for Mitigation: A Multiple Country Study

A contingent valuation study conducted in China, Sweden, and the United States was used to investigate citizens’ willingness to pay (WTP) for reducing CO2 emissions. We find that a majority of the respondents in all three countries believe that the mean global temperature has increased over the last 100 years and that humans are responsible for the increase. The share of Americans that believes these statements is smaller, and a relatively larger share of Americans also believes that nothing can be done to stop climate change. Sweden has the highest WTP, while China has the lowest. (JEL Q51, Q54)

Airline choice, switching costs and frequent flyer programmes

Switching costs are costs that customers face when switching from one firm to another. In markets such as the airline market where repeated purchases are common, switching costs may be substantial. In this paper, the switching costs are estimated for domestic airline routes in Sweden between 1992 and 2002. In addition, the determinants of these switching costs are tested for; in particular, to what extent factors such as frequent flyer programmes and flag carriers have an effect on switching costs. A substantial switching cost is found. Although a large part of this calculated switching cost can be attributed to perceived quality differences, it is also found that frequent flyer programmes contribute a non-negligible part of the switching cost. The paper ends with a brief discussion on the welfare consequences of switching costs, where the connection between habit formation and switching costs is discussed.

What have we learnt from the European Union's Emissions Trading System?

The EU Emissions Trading System (ETS) demonstrated the ability to design and launch a large-scale trading system in a short period of time. The path from initial reticence about emissions trading to implementation of the world’s largest program is an important history. Three issues play a large role in the evaluation of the program to date and its on-going development: allocation plans, cost uncertainty, and leakage of emissions to abroad. Decisions in Phase I and II (2005–2012) were responsive to questions of political feasibility and implementation, but some of these decisions including allocation in particular will be substantially revised in Phase III (2013–2020).

Attitudes to personal carbon allowances: political trust, fairness and ideology

The idea of personal carbon allowances (PCAs) was presented by the UK Environment Secretary, David Miliband, in 2006. Although no nation state is seriously developing proposals for them, they have been discussed within academia, NGOs and policy-making circles. PCAs can be seen as a logical extension of emissions trading schemes, which has so far only applied at the firm level, to individuals. The purpose of this article is to analyse some critical aspects of the publics support for a PCA scheme. In particular, the focus is on the relationship between peoples attitudes to a PCA scheme and their trust in politicians, its perceived fairness, and its underlying ideology, respectively. The relationship between peoples attitudes towards an increase in the current carbon tax rate and their attitudes towards an implementation of a PCA scheme is analysed. The study is based on a mail questionnaire sent out to a random, representative sample in Sweden.

Attitudes towards CO2 taxation - is there an Al Gore effect?

Fuel taxes are one of the most powerful climate policies. Yet, these taxes have not been given very much attention in the global debate regarding climate policy, compared with other instruments, such as tradable emission permits. This article shows, however, that the immense media coverage during fall 2006 significantly affected peoples attitudes towards the CO2 tax on gasoline. We conducted a survey where we asked for peoples opinions about the CO2 tax in September and in December 2006, i.e. before and after the release of Al Gores ‘An Inconvenient Truth’ and the Stern Review. We found that the attitude towards the level of the CO2 tax was significantly changed after these events; people became much more positive towards the tax. This signals that using the CO2 tax as an important climate policy becomes more politically feasible and legitimate when more attention is drawn to climate change problems.

Puzzling tax attitudes and labels

We find that through labelling one can significantly affect attitudes towards a tax. The gasoline tax meets a stronger reluctance than virtually the same tax when it is called the CO2 tax on gasoline.

To trade or not to trade: firm-level analysis of emissions trading in Santiago, Chile.

Whether tradable permits are appropriate for use in transition and developing economies--given special social and cultural circumstances, such as the lack of institutions and lack of expertise with market-based policies--is much debated. We conducted interviews and surveyed a sample of firms subject to emissions trading programs in Santiago, Chile, one of the first cities outside the OECD that has implemented such trading. The information gathered allows us to study what factors affect the performance of the trading programs in practice and the challenges and advantages of applying tradable permits in less developed countries.

THE PHASE-OUT OF LEADED GASOLINE IN THE EU: A SUCCESSFUL FAILURE?

The objective of this paper is to analyze in both descriptive and econometric terms the phase-out of leaded gasoline consumption in the EU countries. The phase-out process is characterized by increased consumption of unleaded gasoline. We analyze the importance of price differences, share of catalytic converters, income per capita, and country characteristics in the phase-out process. Since the expected maintenance costs of using unleaded gasoline in cars without catalytic converters compared to the use of leaded gasoline differ insignificantly according to available evidence, and consumers still use leaded gasoline even though unleaded gasoline is cheaper; we interpret this as a lack of reliable information. The results indicate that countries, which have not yet phased out leaded gasoline, should do this by either banning leaded gasoline or by increasing the tax differential between leaded and unleaded gasoline depending on the objective of the social planner.

Discrimination in Scientific Review: A Natural Field Experiment on Blind Versus Non‐Blind Reviews

Using papers submitted to an international conference on economics held in Sweden in 2008, we analyze how gender, as well as other characteristics of the authors and reviewers, affects the grading of these papers by the reviewers. Correcting for other variables, including the country and research field, as well as the academic level of the author, we focus on the difference in grades between blind and non-blind review treatments. We find that non-blind reviewing has little effect, and there is no significant evidence of gender discrimination. Furthermore, we do not find any significant difference between the average grading by female and male reviewers.

Higher education for sustainability: can education affect moral perceptions?

Abstract A considerable literature looks at universities’ approaches to integrating sustainable development into teaching and learning, but less is known about how Education for Sustainable Development (ESD) affects student attitudes, values and norms. To our knowledge, only a few studies have quantified such effects of changes in curricula. This study contributes to this literature by quantifying and measuring the effect of a compulsory sustainability activity on students’ ethical and moral perceptions. Our results show that ESD can indeed affect moral perceptions of what constitutes socially appropriate behaviour, but not in a homogenous way. Instead, the effect varies with background characteristics of the students.