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

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 eff...

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Main Authors:	Coville, Aidan, Orozco-Olvera, Victor, Reichert, Arndt
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2019
Subjects:	RENEWABLE ENERGY SELECTIVE ATTENTIVENESS INVESTMENT INFORMATION CAMPAIGN DECISION-MAKERS SELECTIVE ATTENTION
Online Access:	http://documents.worldbank.org/curated/en/935421568313537951/Paying-Attention-to-Profitable-Investments-Experimental-Evidence-from-Renewable-Energy-Markets http://hdl.handle.net/10986/32416

id	okr-10986-32416
recordtype	oai_dc
spelling	okr-10986-324162022-09-20T00:15:27Z Paying Attention to Profitable Investments : Experimental Evidence from Renewable Energy Markets Coville, Aidan Orozco-Olvera, Victor Reichert, Arndt RENEWABLE ENERGY SELECTIVE ATTENTIVENESS INVESTMENT INFORMATION CAMPAIGN DECISION-MAKERS SELECTIVE ATTENTION 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. 2019-09-18T21:16:30Z 2019-09-18T21:16:30Z 2019-09 Working Paper http://documents.worldbank.org/curated/en/935421568313537951/Paying-Attention-to-Profitable-Investments-Experimental-Evidence-from-Renewable-Energy-Markets http://hdl.handle.net/10986/32416 English Policy Research Working Paper;No. 9009 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	RENEWABLE ENERGY SELECTIVE ATTENTIVENESS INVESTMENT INFORMATION CAMPAIGN DECISION-MAKERS SELECTIVE ATTENTION
spellingShingle	RENEWABLE ENERGY SELECTIVE ATTENTIVENESS INVESTMENT INFORMATION CAMPAIGN DECISION-MAKERS SELECTIVE ATTENTION Coville, Aidan Orozco-Olvera, Victor Reichert, Arndt Paying Attention to Profitable Investments : Experimental Evidence from Renewable Energy Markets
relation	Policy Research Working Paper;No. 9009
description	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.
format	Working Paper
author	Coville, Aidan Orozco-Olvera, Victor Reichert, Arndt
author_facet	Coville, Aidan Orozco-Olvera, Victor Reichert, Arndt
author_sort	Coville, Aidan
title	Paying Attention to Profitable Investments : Experimental Evidence from Renewable Energy Markets
title_short	Paying Attention to Profitable Investments : Experimental Evidence from Renewable Energy Markets
title_full	Paying Attention to Profitable Investments : Experimental Evidence from Renewable Energy Markets
title_fullStr	Paying Attention to Profitable Investments : Experimental Evidence from Renewable Energy Markets
title_full_unstemmed	Paying Attention to Profitable Investments : Experimental Evidence from Renewable Energy Markets
title_sort	paying attention to profitable investments : experimental evidence from renewable energy markets
publisher	World Bank, Washington, DC
publishDate	2019
url	http://documents.worldbank.org/curated/en/935421568313537951/Paying-Attention-to-Profitable-Investments-Experimental-Evidence-from-Renewable-Energy-Markets http://hdl.handle.net/10986/32416
_version_	1764476503709450240

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

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