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Behavioral economics and climate protection: Better regulation and green nudges for more sustainability

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  • Enste, Dominik
  • Potthoff, Jennifer

Abstract

Protecting the climate is one of the greatest challenges our society is currently facing. In view of the heated political and social discussions surrounding this topic, the question naturally arises as to whether behavioral-economic insights can be used to sensitize German society to the dangers of climate change and to motivate it towards more sustainability. The field of behavioral economics provides empirical evidence of psychological factors that influence and even hinder sustainable behavior, ultimately leading to a gap between the will to act sustainably and actual behavior. Cognitive barriers, different social factors and group affiliations result in a complex system of diverse behavioral patterns, environmental attitudes, needs and expectations that must be considered when designing environmental policy instruments. People can be motivated to behave more ecologically without restricting their freedom of choice by the intelligent and effective use of green nudges rather than prohibitions. Identifying an effective, target-group-specific and ethical policy for counteracting climate change and encouraging more sustainable behavior requires an interdisciplinary approach combining behavioral-economic empiricism with ethical insights.

Suggested Citation

  • Enste, Dominik & Potthoff, Jennifer, 2021. "Behavioral economics and climate protection: Better regulation and green nudges for more sustainability," IW-Analysen, Institut der deutschen Wirtschaft (IW) / German Economic Institute, volume 127, number 146.
    • Handle: RePEc:zbw:iwkana:146
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    References listed on IDEAS

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    1. Abrahamse, Wokje & Keall, Michael, 2012. "Effectiveness of a web-based intervention to encourage carpooling to work: A case study of Wellington, New Zealand," Transport Policy, Elsevier, vol. 21(C), pages 45-51.
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