The effect of uncertainty about future CO2-prices on green investments of retail investors

Last registered on January 31, 2024

View Trial History

Pre-Trial

Trial Information

General Information

Title

The effect of uncertainty about future CO2-prices on green investments of retail investors

RCT ID

AEARCTR-0012896

Initial registration date

January 29, 2024

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published

January 31, 2024, 12:15 PM EST

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

Country

Germany

Region

Primary Investigator

Name

Philipp Doerrenberg

Affiliation

University of Mannheim

Contact Primary Investigator

Other Primary Investigator(s)

PI Name

Tabea Bucher-Koenen

PI Affiliation

University of Mannheim/ZEW

Contact Investigator

PI Name

Christoph Feldhaus

PI Affiliation

U. Bochum

Contact Investigator

PI Name

Youpeng Zhang

PI Affiliation

ZEW / U. Mannheim

Contact Investigator

Additional Trial Information

Status

In development

Start date

2024-01-29

End date

2024-03-29

Keywords

Finance & Microfinance

Additional Keywords

Green finance, uncertainty, CO2 price, survey, experiment, investment, retail investors

JEL code(s)

Secondary IDs

Prior work

This trial does not extend or rely on any prior RCTs.

Abstract

We study the effect of uncertainty about future CO2-prices on the green investment behavior of retail investors.

External Link(s)

Registration Citation

Citation

Bucher-Koenen, Tabea et al. 2024. "The effect of uncertainty about future CO2-prices on green investments of retail investors." AEA RCT Registry. January 31. https://doi.org/10.1257/rct.12896-1.0

Sponsors & Partners

Experimental Details

Interventions

Intervention(s)

Intervention Start Date

2024-02-01

Intervention End Date

2024-03-29

Primary Outcomes

Primary Outcomes (end points)

Survey question in which participants decide if they wish to invest a hypothetical amount of 10,000 EUR either into a conventional fund or a fund that is certified to be sustainable.

Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)

We may also study the effect of uncertainty on the perceived risk and returns of green investments.

Secondary Outcomes (explanation)

Experimental Design

Particpants fill out a survey relating to CO2-prices.

Experimental Design Details

See above field "Intervention (Private)"

Randomization Method

By computer.

Specifically: We create 5 random numbers before the treatment in the survey. Participants are not able to see these random numbers, because it is hidden. Participants receiving the number 1 and 2 are the high uncertainty group. Number 3 and 4 -> Low uncertainty group. Number 5 -> control group. Basically, we have then 40% for the high uncertainty group and 40% for the low uncertainty group. 20% for control group.

Randomization Unit

Individual

Was the treatment clustered?

Experiment Characteristics

Sample size: planned number of clusters

2500

Sample size: planned number of observations

2500

Sample size (or number of clusters) by treatment arms

40% of participants in group "low uncertainty", 40% of participants in group "high uncertainty", 20% of participants in control group.

Minimum detectable effect size for main outcomes (accounting for sample design and clustering)

We base the power analysis on a previous survey on CO2-price uncertainty that we embedded in the German Internet Panel (GIP). The outcome variable there was an absolute EUR amount, rather than a dummy variable that we have here in the present experiment. The power analysis reveals that we need 1366 observations, spread over the two groups "high uncertainty" and "low uncertainty", to detect a 10% effect size for high uncertainty relative to low uncertainty. Specifications of the power analysis: Power (1-ß): 0,80; Type I error rate: 0,05; Equally Sized Groups; One-sided test

Supporting Documents and Materials

IRB