Technology adoption subsidies: An experiment with managers

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Abstract

We evaluate the impact of technology adoption subsidies on investment behavior in an individual choice experiment. In a laboratory setting professional managers are confronted with an intertemporal decision problem in which they have to decide whether or not to search for, and possibly adopt, a new technology. Technologies differ in the per-period benefits they yield, and their purchase price increases with the perperiod benefits provided. We introduce a subsidy on the more expensive technologies (that also yield larger per-period benefits), and find that the subsidy scheme induces agents to search for and adopt these more expensive technologies even though the subsidy itself is too small to render these technologies profitable. We speculate that the result is driven by the positive connotation (affect) that the concept ‘subsidy’ invokes.
Original languageEnglish
Pages (from-to)431-442
JournalEnergy Economics
Volume31
Issue number3
Publication statusPublished - 2009

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Managers
Experiments
Subsidies
Experiment
Technology adoption

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title = "Technology adoption subsidies: An experiment with managers",
abstract = "We evaluate the impact of technology adoption subsidies on investment behavior in an individual choice experiment. In a laboratory setting professional managers are confronted with an intertemporal decision problem in which they have to decide whether or not to search for, and possibly adopt, a new technology. Technologies differ in the per-period benefits they yield, and their purchase price increases with the perperiod benefits provided. We introduce a subsidy on the more expensive technologies (that also yield larger per-period benefits), and find that the subsidy scheme induces agents to search for and adopt these more expensive technologies even though the subsidy itself is too small to render these technologies profitable. We speculate that the result is driven by the positive connotation (affect) that the concept ‘subsidy’ invokes.",
author = "R.F.T. Aalbers and {van der Heijden}, E.C.M. and J.J.M. Potters and {van Soest}, D.P. and H.R.J. Vollebergh",
year = "2009",
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Technology adoption subsidies : An experiment with managers. / Aalbers, R.F.T.; van der Heijden, E.C.M.; Potters, J.J.M.; van Soest, D.P.; Vollebergh, H.R.J.

In: Energy Economics, Vol. 31, No. 3, 2009, p. 431-442.

Research output: Contribution to journalArticleScientificpeer-review

TY - JOUR

T1 - Technology adoption subsidies

T2 - An experiment with managers

AU - Aalbers, R.F.T.

AU - van der Heijden, E.C.M.

AU - Potters, J.J.M.

AU - van Soest, D.P.

AU - Vollebergh, H.R.J.

PY - 2009

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N2 - We evaluate the impact of technology adoption subsidies on investment behavior in an individual choice experiment. In a laboratory setting professional managers are confronted with an intertemporal decision problem in which they have to decide whether or not to search for, and possibly adopt, a new technology. Technologies differ in the per-period benefits they yield, and their purchase price increases with the perperiod benefits provided. We introduce a subsidy on the more expensive technologies (that also yield larger per-period benefits), and find that the subsidy scheme induces agents to search for and adopt these more expensive technologies even though the subsidy itself is too small to render these technologies profitable. We speculate that the result is driven by the positive connotation (affect) that the concept ‘subsidy’ invokes.

AB - We evaluate the impact of technology adoption subsidies on investment behavior in an individual choice experiment. In a laboratory setting professional managers are confronted with an intertemporal decision problem in which they have to decide whether or not to search for, and possibly adopt, a new technology. Technologies differ in the per-period benefits they yield, and their purchase price increases with the perperiod benefits provided. We introduce a subsidy on the more expensive technologies (that also yield larger per-period benefits), and find that the subsidy scheme induces agents to search for and adopt these more expensive technologies even though the subsidy itself is too small to render these technologies profitable. We speculate that the result is driven by the positive connotation (affect) that the concept ‘subsidy’ invokes.

M3 - Article

VL - 31

SP - 431

EP - 442

JO - Energy Economics

JF - Energy Economics

SN - 0140-9883

IS - 3

ER -