Term paper in GRA 5917 Public Opinion and Input Politics Lisa Rohrhirsch

Overview ”A fine is a price” – Uri Gneezy and Aldo Rustichini (2000) New field: EU countries and a price on emissions Findings so far…

”A fine is a price” Testing the deterrence hypothesis on 10 kindergartens in Israel Introduced a fine on delayed pick up of children Found that the amount of delayed parents increased – contradicting the deterrence hypothesis

”A fine is a price” Explanations: – Differential information and incomplete contracts – A simple formal model of utility maximization (d*) – Social norms

My study Testing the GHG emissions before and after the EU ETS (1)GHG emissions will increase after the introduction of a price on emissions -> Emission of GHGs in Europe would increase after the introduction of the EU ETS (2) GHG emissions will stay at a high level after the price on emissions are removed -> Emissions of greenhouse gasses will remain stable in the EU even though the EU ETS will be abolished.

Findings so far…

Possible explanations Difference in the severity of both the crime and the punishment No actual price on emissions