Take the Good With the Bad, and the Bad With the Good? An Experiment on Pro‐Environmental Compensatory Behavior

ABSTRACT This study investigates the extent to which people are subject to moral licensing in the environmental domain by examining moral dynamics at a disaggregated level. Using Giving and Taking games with environmental NGOs, we found that aggregate results hide important heterogeneity. Half of the participants engaged in compensatory behavior, with highly environmentally concerned individuals compensating more frequently. Men were more consistent than women, but when they adopted moral licensing, their compensation was significantly greater than that of women. These findings suggest opportunities for improving environmental policy effectiveness.