Will Green taxes Undermine Moral Motivation?
Both psychologists and economists have shown that under certain circumstances, economic incentives seem to undermine intrinsic or moral motivation. If such crowding-out effects are sufficiently strong, the effect of green taxes might even be counterproductive and increase, rather than decrease, environmental problems. How-ever, moral motivation can also be reinforced by economic incentives, a fact which has received surprisingly little attention in the literature. In particular, reciprocal preferences and conditional cooperation may cause green taxes to support, rather than under-mine, individuals' moral motivation to contribute to a better environment.ABSTRACT FROM AUTHORCopyright of Public Finance & Management is the property of Southern Public Administration Education Foundation and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.