Adapting neuroeconomics for environmental and energy policy

Neuroimaging methods provide insight into the neural mechanisms underlying the decision process, characterizing choice at the individual level and, in a growing number of contexts, predicting national- and market-level behavior. This dual capacity to examine heterogeneity while forecasting aggregate choice is particularly beneficial to those studying environmental decision-making. To effectively reduce residential energy usage and foster other pro-environmental behaviors, policy-makers must understand the effects of information frames and behavioral nudges across individuals who hold a diverse array of attitudes toward the environment and face a broad range of barriers to action. This paper articulates the potential of neuroeconomic methods to aid environmental policy-makers interested in behavior change, especially those interested in closing the energy efficiency gap. Investigation into the roles of affect, eco-labeling and social norms will be discussed, as well as personal identity and climate change beliefs. Combining neuroimaging with behavioral economics experiments can inform the development of effective messaging, characterize the influence of individual differences on the decision process and aid in forecasting the efficacy of policy interventions at scale.