How sludge impairs the effectiveness of policy programs : a field experiment with SMEs

Grieder, Manuel; Kistler, Deborah; Schmitz, Jan

doi:10.2139/ssrn.4249095

Publication type:	Working paper – expertise – study
Title:	How sludge impairs the effectiveness of policy programs : a field experiment with SMEs
Authors:	Grieder, Manuel Kistler, Deborah Schmitz, Jan
et. al:	No
DOI:	10.2139/ssrn.4249095
Extent:	27
Issue Date:	2023
Publisher / Ed. Institution:	SSRN
Language:	English
Subjects:	Sludge; Field experiment; Small and medium-sized enterprise; SME; Environmental management; Choice architecture; Pro-environmental behavior; Public policy
Subject (DDC):	363: Environmental and security problems
Abstract:	Small and Medium-sized Enterprises (SMEs) make up the largest share of companies in most economies. They are major users of resources and cause a large share of environmental pollution, which makes them relevant targets for public policy programs aiming to increase their sustainability. We study how “sludge” in the form of small frictions in the choice architecture can have an important impact on the uptake and the effectiveness of such public policy programs targeted at SMEs. To do so, we conducted a field experiment within an existing governmental program in Switzerland that aims to support SMEs in the implementation of cost-effective environmental management practices. We slightly manipulated the process of receiving initial benefits to implement such environmentally-friendly practices in a firm. We find that sludge in the form of minor additional effort required to receive benefits substantially undermined the effectiveness of the program by 50%. Our findings carry important implications for policymakers: even minor sludge in the choice architecture may seriously harm the effectiveness of public policy programs targeted at companies.
URI:	https://digitalcollection.zhaw.ch/handle/11475/27691
License (according to publishing contract):	Licence according to publishing contract
Departement:	School of Management and Law
Organisational Unit:	Center for Energy and Environment (CEE)
Appears in collections:	Publikationen School of Management and Law

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Grieder, M., Kistler, D., & Schmitz, J. (2023). How sludge impairs the effectiveness of policy programs : a field experiment with SMEs. SSRN. https://doi.org/10.2139/ssrn.4249095

Grieder, M., Kistler, D. and Schmitz, J. (2023) How sludge impairs the effectiveness of policy programs : a field experiment with SMEs. SSRN. Available at: https://doi.org/10.2139/ssrn.4249095.

M. Grieder, D. Kistler, and J. Schmitz, “How sludge impairs the effectiveness of policy programs : a field experiment with SMEs,” SSRN, 2023. doi: 10.2139/ssrn.4249095.

GRIEDER, Manuel, Deborah KISTLER und Jan SCHMITZ, 2023. How sludge impairs the effectiveness of policy programs : a field experiment with SMEs. SSRN

Grieder, Manuel, Deborah Kistler, and Jan Schmitz. 2023. “How Sludge Impairs the Effectiveness of Policy Programs : A Field Experiment with SMEs.” SSRN. https://doi.org/10.2139/ssrn.4249095.

Grieder, Manuel, et al. How Sludge Impairs the Effectiveness of Policy Programs : A Field Experiment with SMEs. SSRN, 2023, https://doi.org/10.2139/ssrn.4249095.