The complementary of low taxes and pro-social guidelines when polluters have moral preferences

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.

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Main Author: Caffera, Marcelo (author)
Other Authors: Chávez, Carlos (author), López, Carolina (author), Murphy, James J. (author), Briozzo, Juan (author)
Format: report
Language:English
Published: 2025
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Online Access:https://hdl.handle.net/20.500.12806/2743
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author Caffera, Marcelo
author2 Chávez, Carlos
López, Carolina
Murphy, James J.
Briozzo, Juan
author2_role author
author
author
author
author_browse Briozzo, Juan
Caffera, Marcelo
Chávez, Carlos
López, Carolina
Murphy, James J.
author_facet Caffera, Marcelo
Chávez, Carlos
López, Carolina
Murphy, James J.
Briozzo, Juan
author_role author
collection REDUM
dc.contributor.none.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.none.fl_str_mv 2025-07-24T17:25:02Z
2025-07-24T17:25:02Z
2025
dc.format.none.fl_str_mv 31 p.
text/plain
dc.identifier.none.fl_str_mv https://hdl.handle.net/20.500.12806/2743
dc.language.none.fl_str_mv eng
dc.publisher.none.fl_str_mv Universidad de Montevideo, Facultad de Ciencias Empresariales y Economía
dc.rights.none.fl_str_mv Abierto
info:eu-repo/semantics/openAccess
Attribution-NonCommercial-NoDerivatives 4.0 Internacional
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.none.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.none.fl_str_mv Reporte técnico
info:eu-repo/semantics/report
Aceptada
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 anni_4785373345f29aa42edf924d2bcef4e1
instacron_str Universidad de Montevideo
institution Universidad de Montevideo
instname_str Universidad de Montevideo
language eng
network_acronym_str anni
network_name_str oai-lr-anni
oai_identifier_str oai:redum.um.edu.uy:20.500.12806/2743
publishDate 2025
publishDateSort 2025
publisher.none.fl_str_mv Universidad de Montevideo, Facultad de Ciencias Empresariales y Economía
reponame_str REDUM
repository.mail.fl_str_mv
repository.name.fl_str_mv
repository_id_str
rights_invalid_str_mv Abierto
Attribution-NonCommercial-NoDerivatives 4.0 Internacional
http://creativecommons.org/licenses/by-nc-nd/4.0/
spelling The complementary of low taxes and pro-social guidelines when polluters have moral preferencesCaffera, MarceloChávez, CarlosLópez, CarolinaMurphy, James J.Briozzo, JuanEconomic experimentNudgeProsocial guidelinePublic badTaxFunding 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.Universidad de Montevideo, Facultad de Ciencias Empresariales y EconomíaCaffera, 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, Uruguay2025-07-24T17:25:02Z2025-07-24T17:25:02Z2025Reporte técnicoinfo:eu-repo/semantics/reportAceptadainfo:eu-repo/semantics/acceptedVersion31 p.text/plainhttps://hdl.handle.net/20.500.12806/2743reponame:REDUMinstname:Universidad de Montevideoinstacron:Universidad de MontevideoengAbiertoinfo:eu-repo/semantics/openAccessAttribution-NonCommercial-NoDerivatives 4.0 Internacionalhttp://creativecommons.org/licenses/by-nc-nd/4.0/oai:redum.um.edu.uy:20.500.12806/27432026-06-16T07:01:53Z
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