Intergenerational and intragenerational preferences in a developing country to avoid climate change

Abstract

Intergenerational and intragenerational approaches to climate change take into account the actions taken by the current generation to maintain or improve the climate, which is advantageous to both the present and future generations. Climate-friendly initiatives primarily benefit future generations, with current generations receiving lesser benefits. Self-interest can hinder the management of shared resources, as seen in the “tragedy of the commons” concept, where individuals benefit from defecting, but society bears the consequences of it. This study used three different time horizons to determine the inter- and intra-generational preferences of groups of human subjects for preventing hazardous climate change. We looked at how groups of participants responded in scenarios that varied in motivation, income, social pressure, and learning opportunities. For this purpose, we conducted two group experiments framed around climate change where participants could choose to cooperate for a noble cause: tree plantations. Its rewards are delayed by several years and probably a few decades (intergenerational discounting), where future generations will be the big beneficiaries. There were two more options: the first one delayed the reward by 1 week, and the second was delayed by seven weeks (intragenerational discounting). We found that intergenerational discounting was high when the groups had free will and motivation. Further, it is revealed that having more money does not play a significant positive role in long-term climate sustainability in a developing country; however, it does, but not as much as motivation and free will do.