The role of higher-order risk preferences in belief updating and preventive action: the case of environmental risk

Last registered on April 01, 2026

Pre-Trial

Trial Information

General Information

Title
The role of higher-order risk preferences in belief updating and preventive action: the case of environmental risk
RCT ID
AEARCTR-0018226
Initial registration date
March 27, 2026

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
April 01, 2026, 10:06 AM EDT

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

Locations

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Primary Investigator

Affiliation
University of Göttingen

Other Primary Investigator(s)

PI Affiliation
University of Göttingen
PI Affiliation
University of Göttingen

Additional Trial Information

Status
On going
Start date
2025-10-01
End date
2027-07-31
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
Climate change is expected to intensify extreme weather events, posing a significant risk to economic development. Effective adaptation requires accurate risk perception; however, individuals often underestimate environmental risks, resulting in inadequate preventive action. Therefore, improving belief updating may enhance adaptive behaviour. While traditional models emphasise risk aversion in decision-making under uncertainty, recent behavioural economics research highlights the role of higher-order risk preferences, such as prudence and temperance. These factors remain under-explored, particularly in environmental contexts. This study investigates how higher-order risk preferences influence belief updating regarding environmental risks and the intention to adopt preventive measures. We hypothesise that prudence and temperance are important predictors of responsiveness to new risk information and engagement in adaptive behaviour. To examine this, we conducted a field experiment on a small tropical island in Indonesia, which is disproportionately exposed to climate-related hazards, providing a salient context in which to study risk perception and behavioural responses. Our study contributes to the literature of decision-making under uncertainty with novel empirical evidence on the relationship between higher-order risk preferences and prevention behaviour; as well as to the literature of climate change economics with evidence on environmental risk perceptions in regions particularly susceptible to higher climate risk.
External Link(s)

Registration Citation

Citation
Duarte Lisboa Paschoaleto, Rafael, Phidju Marrin Sagala and Sekar Yunita. 2026. "The role of higher-order risk preferences in belief updating and preventive action: the case of environmental risk." AEA RCT Registry. April 01. https://doi.org/10.1257/rct.18226-1.0
Experimental Details

Interventions

Intervention(s)
The field experiment consists of an incentivised activity in which participants will be asked to perform a series of tasks and answer a series of questions in order to determine the dependent, independent and control variables to be used in the analysis. The experiment will be conducted on the Pagai Islands (North and South Pagai), located off the western coast of Sumatra, Indonesia. These islands were among the areas most severely affected by the 2010 Mentawai earthquake and tsunami. Data will be collected on site with the help of local enumerators.

The fieldwork is planned to last 3 weeks in April 2026. Researchers will visit local communities and recruit individuals by randomly selecting households in the region to visit. Participants will be invited to take part in the experiment on the spot, with no prior communication. Respondents can decide whether to participate voluntarily and can reject the invitation at any time without penalty. To enable them to make an informed decision, potential participants will receive sufficient information about the study's objectives, topics and the types of data to be collected, as well as the purposes of the analyses, when they are invited to participate. Field enumerators will give respondents who decide to participate a printed copy of the informed consent, including contact information and the data protection regulation.

A total of 15 local communities will be visited, with around 20 interviews conducted in each community. The questionnaire will be administered using tablets. Survey participants were required to be at least 18 years old and to have a basic understanding of numerical concepts. The age threshold was set in reference to legal adulthood markers in Indonesia, where the minimum voting age is 17 and the legal age for marriage is 19, thereby ensuring that respondents possess a minimum level of legal and decision-making capacity.
Intervention Start Date
2026-04-01
Intervention End Date
2026-04-17

Primary Outcomes

Primary Outcomes (end points)
The primary outcomes are the measures of beliefs about environmental risks and the uptake of preventive measures.
Primary Outcomes (explanation)
We elicit both prior and posterior environmental risk perceptions in order to accurately capture belief updating following information provision. In both cases, we elicit the mean and variance of risk perception to better characterise its distribution. Regarding the uptake of preventive measures, we assess two actions: the intention to donate to the cause and the willingness to voice concerns to local leaders. Both actions are extensively and intensively measured (i.e. uptake or not and the level of effort applied to each action). To minimise experimenter demand effects, respondents reply to these activities anonymously and discreetly.

Secondary Outcomes

Secondary Outcomes (end points)
As a secondary outcome, we elicit an alternative measure of beliefs about environmental risks. In this case, we use an instrument comprising three different belief elicitation questions.
Secondary Outcomes (explanation)
This alternative belief measure will be constructed using the obviously related instrumental variable (ORIV) approach. This method combines different questions and formulations to provide a more efficient estimator, as outlined by Gillen, Snowberg and Yariv (2019). To ensure that the instrument is less prone to measurement errors, we ask three types of question concerning the perceived returns of the assets: qualitative, quantitative and probabilistic (Haaland et al., 2023).

Experimental Design

Experimental Design
In order to answer our research questions and test our hypotheses, we are planning to conduct a field experiment. This will enable us to elicit risk preferences, perceived environmental risk measures and willingness to take preventive action, as well as to apply information provision treatments. The experiment will comprise six sections, each containing tasks designed to elicit specific individual attitudes or preferences. Three of these tasks are incentive compatible, such that the answers given can influence the monetary compensation for participating in the experiment.
Experimental Design Details
Not available
Randomization Method
Randomisation will be performed at the individual level at the start of the questionnaire. This will be done using a computer-based randomisation process calculated by the experiment programming tool.
Randomization Unit
Individuals.
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
15 grids of 1 km² each.
Sample size: planned number of observations
300 individuals.
Sample size (or number of clusters) by treatment arms
At least 20 respondents per grid and at least 100 respondents will be assigned to one of the three study arms: control and two treatments.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Assuming a significance level of 5%, statistical power of 80%, and a conservative ICC of 0.5, the minimum detectable effect size is approximately 0.16 standard deviations.
IRB

Institutional Review Boards (IRBs)

IRB Name
Ethics Committee of the University of Göttingen
IRB Approval Date
2026-03-02
IRB Approval Number
N/A