Behavioral Economics and Environmental Policy

Carlsson, Fredrik; Johansson‐Stenman, Olof

doi:10.1146/annurev-resource-110811-114547

Cited by 79 publications

(49 citation statements)

References 168 publications

(125 reference statements)

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“…In parallel with this increase in academic interest, it has also been recognized that understanding human decision processes has important implications for public policy (Thaler and Sunstein 2008). This is also true for policies related to sustainable behavior (Bamberg et al 2011;Ölander and Thøgersen 2014), which is reflected in a number of articles and survey papers (Gowdy 2008;Shogren and Taylor 2008;Peattie 2010;Carlsson and Johansson-Stenman 2012;Hammitt 2013;Croson and Treich 2014).…”

Section: Relevant Concepts In Behavioral Sciencementioning

confidence: 96%

Consumers and their behavior: state of the art in behavioral science supporting use phase modeling in LCA and ecodesign

Sorrentino

Woelbert

Sala

2016

Int J Life Cycle Assess

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Purpose Life cycle thinking and assessment require a holistic approach to the evaluation of product supply chains. An assessment from raw material extraction to end of life of any products is based on modeling a wide number of aspects and options, e.g., at technological, geographical, and temporal levels. Since the use phase is one of the most contributing life cycle stages for some products (e.g., appliance, housing, cars), a robust modeling of this stage is fundamental. Several attempts to better modeling use-phase have been performed; however, so far no systematic study is available on how to integrate behavioral science (BS) insights into LCA. This is even more important when the impact of the product under consideration is strongly determined by the use phase relatively to other life cycle stages. The aim of this paper is to explore how behavioral science has been used to date and how BS can contribute towards more robust modeling of use phase in LCA and as basis for a behavior-driven ecodesign. Methods We identified the key areas in which LCA and ecodesign may benefit from integrating insights from behavioral science and developing a conceptual model. Both robust modeling and the design of behavior change interventions rest on a sound understanding of behavior in the specific context of interest though empirical investigation. Hence, we reviewed literature on behavioral science and introduce key drivers of human behavior that are relevant in the context of use phase modeling and ecodesign. We provide examples where these were applied to facilitate the integration of BS elements by practitioners. Results and discussion Consumer's behavior is increasingly recognized as one of the drivers of overall environmental impact of a product, and some examples of use of BS for LCA are available in literature. We suggest that behavioral science can be useful in the context of life cycle assessment in two ways: measuring behavior and assessing potential and means for changing behavior. Specifically, insights and methods from behavioral sciences could be applied for assessing variability of consumer behavior, understanding leverages for behavioral changes, and possible rebound effects. Conclusions This insight may help to model the use phase more accurately, to identify realistic scenarios, and to support behavior-driven eco-innovation.

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Section: Relevant Concepts In Behavioral Sciencementioning

confidence: 96%

Consumers and their behavior: state of the art in behavioral science supporting use phase modeling in LCA and ecodesign

Sorrentino

Woelbert

Sala

2016

Int J Life Cycle Assess

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“…The literature on behavioral environmental economics is not completely new; there is already a special volume in Environmental and Resource Economics in 2010 on this topic, and a handful of survey papers (Shogren and Taylor 2008, Gowdy 2008, Carlsson and Johansson-Stenman 2012, Hammitt 2013. This literature has often discussed how traditional policy instruments (like taxes), or traditional methods (like cost-benefit analysis), can be affected by behavioral concerns, including taxes crowding out public good contributions (Deci 1975, Benabou and Tirole 2006, Nyborg 2010, or the impact of hyperbolic discounting (Karp 2005) or reference dependent preferences (Munro 2009) on environmental policy.…”

Section: Introductionmentioning

confidence: 99%

Behavioral Environmental Economics: Promises and Challenges

Croson

Treich

2014

Environ Resource Econ

140

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Abstract:Environmental issues provide a rich ground for identifying the existence and consequences of human limitations. In this paper, we present a growing literature lying at the interface between behavioral and environmental economics. This literature identifies alternative solutions to traditional economic instruments in environmental domains that often work imperfectly. But it also faces a set of challenges, including the difficulty of computing welfare effects, and the identification of a robust environmental policy based on context-dependent (socio-) psychological effects. We illustrate our critical discussion with two behavioral schemes that have been widely implemented: "green nudges" and "corporate environmental responsibility."

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“…A major focus in this literature is on 'social norm' nudges (''look what your neighbours are doing'') 4 and/ or 'default' nudges in the household utility consumption (energy and water) and waste recycling (Allcott 2011;Allcott and Mullainathan 2010;Allcott and Rogers 2014;Bernedo et al 2014;Carlsson and Johansson-Stenman 2012;Graffeo et al 2015;Kaenzig et al 2013;Momsen and Stoerk 2014;Sunstein et al 2014;Sunstein and Reisch 2013). A single study tested other 'nudges'-priming, framing, mental accounting, decoy-in addition to social norms and defaults, finding that only the latter two were effective (Momsen and Stoerk 2014).…”

Section: The Contribution Of Environmental Behavioural Economicsmentioning

confidence: 99%

Labels as Nudges? An Experimental Study of Car Eco-Labels

et al. 2016

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This article presents the results of a laboratory experiment and an online multi-country experiment testing the effect of motor vehicle eco-labels on consumers. The laboratory study featured a discrete choice task and questions on comprehension, while the ten countries online experiment included measures of willingness to pay and comprehension. Labels focusing on fuel economy or running costs are better understood, and influence choice about money-related eco-friendly behaviour. We suggest that this effect comes through mental accounting of fuel economy. In the absence of a cost saving frame, we do not find a similar effect of information on CO 2 emissions and eco-friendliness. Labels do not perform as well as promotional materials. By virtue of being embedded into a setting designed to capture the attention, the latter are more effective. We found also that large and expensive cars tend to be undervalued once fuel economy is highlighted.

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Behavioral Economics and Environmental Policy

Cited by 79 publications

References 168 publications

Consumers and their behavior: state of the art in behavioral science supporting use phase modeling in LCA and ecodesign

Consumers and their behavior: state of the art in behavioral science supporting use phase modeling in LCA and ecodesign

Behavioral Environmental Economics: Promises and Challenges

Labels as Nudges? An Experimental Study of Car Eco-Labels

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