Back to Nature or Technology to the Rescue? Climate Managers' Preferences for Investment in Carbon Dioxide Removal

ABSTRACT Firms are increasingly looking into carbon dioxide removal (CDR), a set of options to take past emissions of greenhouse gases out of the atmosphere. Often two basic categories of CDR are distinguished: nature‐based solutions, such as planting trees or restoring wetlands, and technology‐based solutions, such as various forms of carbon capture and storage. What drives managers' decisions to purchase a particular CDR credit? A choice experiment with N = 378 climate managers in three European countries conducting 4158 experimental choices explores factors determining their procurement. Results show that, on average, respondents prefer nature‐based solutions over technology‐based climate solutions. Furthermore, we identify a moderating influence of decision styles: The preference for nature‐based solutions is more pronounced among managers who adopt a more holistic decision style, whereas managers who focus on a single attribute are relatively more likely to prefer technological solutions. Our findings have important implications for further research on the determinants of climate‐related managerial decision making.