Economic Valuation as a Communication Device for Environmental Philanthropy: Evidence from the Lab and Field

Abstract

Through a randomized, controlled laboratory experiment and a natural field experiment with a nonprofit organization partner, we test the efficacy of economic valuation information as a communication strategy for encouraging environmental philanthropy. Although the use of monetary values in fundraising appeals might encourage some to give, for others it may crowd out intrinsic motivation to donate. We find that recent monetary support of environmental causes and organization membership status interact with the economic valuation treatment. Significant heterogeneous effects are found in both experiments, but evidence of motivation crowding is found only in the field.