The Role of Social Norms and Preferences in Overcoming Undersupply of Public Goods: 
New Developments in Empirical and Theoretical Research

The undersupply of public goods is a serious problem in various areas. It arises from the defining characteristics of public goods: non-excludability and non-rivalry in consumption. These features create free-rider incentives, which hamper the voluntary provision of public goods. Consequently, actors do not provide public goods in a socially efficient quantity. As long as these public goods have exclusively local impacts, national or regional government interventions can (partially) address the undersupply. The state can assume the role of provider itself, enact regulations for the provision or conservation of resources, or create incentives for the voluntary provision of public goods. Instruments for creating such incentives include subsidies, for example, in the form of an income tax refund for expenditures incurred in providing public goods.

The provision of international or global public goods is more difficult than the welfare-optimizing provision of local or national ones. Such goods generate effects that extend across national borders, leading to international free-riding. One of the most prominent examples of such a global public good is climate change mitigation. Since climate mitigation projects are not cost-free, actors prefer to benefit from the climate protection measures of others without contributing themselves. Consequently, too few climate mitigation measures are implemented overall. In the absence of a global central governing authority, the socially efficient provision of such public goods cannot be enforced internationally.

Of particular interest for this workshop is the behavior of the actors involved, both public decision-makers and private individuals. Their behavior is influenced not only by their pursuit of material or financial wealth, but also by the social context, through social norms and social preferences. There is still a significant need for research, for instance regarding the reasons why social norms affect cooperation and the theories that predict these effects. A better understanding of how social norms function will contribute to developing superior policy concepts that establish such norms in a welfare-enhancing manner, thereby improving the provision of public goods. The workshop considers empirical and theoretical insights, with a focus on current concepts in the context of norms and social preferences.

The aim of the workshop is to bring together theoretical and empirical researchers to develop ideas for a better integration of both methods. This could establish a foundation for future research on social norms as well as other topics related to the voluntary provision of public goods.

The workshop took place on October 9 and 10, 2019.

Program
The workshop program can be found here.

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Fritz Thyssen Stiftung

This event is funded by the Fritz Thyssen Stiftung.

The workshop was jointly organized by Prof. Dr. Dirk Rübbelke from TU Bergakademie Freiberg, Prof. Dr. Wolfgang Buchholz from the University of Regensburg, and Dr. Christiane Reif from ZEW Mannheim.

For further questions, please contact:

Prof. Dr. Dirk Rübbelke

Sebastian [dot] Otte [at] vwl [dot] tu-freiberg [dot] de (Sebastian Otte)