Skip to Main Navigation

Paying Attention to Profitable Investments : Experimental Evidence from Renewable Energy Markets (English)

This paper provides an explanation for why many information campaigns fail to affect decision-making. The authors experimentally show that a large information intervention about a profitable and climate-friendly household investment had limited effects if it only provided generic data. In contrast, it caused households to make new investments when it followed a campaign strategy designed to minimize information processing costs. This finding is consistent with a model of selective attention, where individuals prioritize information believed to be valuable after accounting for the costs of attending to the data that arise due to limited mental energy and time. The paper studies a range of possible mechanisms and finds corroborative evidence of selective attention as an inhibitor to learning.

Details

Downloads

COMPLETE REPORT

Official version of document (may contain signatures, etc)

  • Official PDF
  • TXT*
  • Total Downloads** :
  • Download Stats
  • *The text version is uncorrected OCR text and is included solely to benefit users with slow connectivity.

Citation

Coville,Aidan Orozco Olvera,Victor Hugo Reichert,Arndt Rudiger

Paying Attention to Profitable Investments : Experimental Evidence from Renewable Energy Markets (English). Policy Research working paper,no. WPS 9009,Impact Evaluation series Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/935421568313537951/Paying-Attention-to-Profitable-Investments-Experimental-Evidence-from-Renewable-Energy-Markets