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Behavioral economics and climate change policy

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  • Gowdy, John M.

Abstract

The policy recommendations of most economists are based on the rational actor model. The emphasis is on achieving efficient allocation by insuring that property rights are completely assigned and that market failures are corrected. This paper takes the position that so-called behavioral "anomalies" are central to human decision-making and, therefore, should be the starting point for effective economic policies. This contention is supported by game theory experiments involving humans and closely related primates. This research suggests that the standard economic approach to climate change policy, with its focus on narrowly rational, self-regarding responses to monetary incentives, is seriously flawed.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 68 (2008)
Issue (Month): 3-4 (December)
Pages: 632-644

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Handle: RePEc:eee:jeborg:v:68:y:2008:i:3-4:p:632-644

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Web page: http://www.elsevier.com/locate/jebo

Related research

Keywords: Behavioral economics Climate change Cooperative behavior Generalized Darwinism Neuroeconomics Rational actor model;

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References

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Citations

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Cited by:
  1. Elisabeth Gsottbauer & Jeroen den Bergh, 2013. "Bounded rationality and social interaction in negotiating a climate agreement," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 13(3), pages 225-249, September.
  2. John M. Gowdy, 2010. "Behavioral economics, neuroeconomics, and climate change policy: baseline review for the garrison institute initiative on climate change," Rensselaer Working Papers in Economics 1010, Rensselaer Polytechnic Institute, Department of Economics.
  3. Anderson, Blake & M'Gonigle, Michael, 2012. "Does ecological economics have a future?," Ecological Economics, Elsevier, vol. 84(C), pages 37-48.
  4. John Gowdy & Aneel Salman, 2007. "Climate Change and Economic Development: A Pragmatic Approach (Invited Lecture)," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 46(4), pages 337-350.
  5. Mzoughi, Naoufel, 2011. "Farmers adoption of integrated crop protection and organic farming: Do moral and social concerns matter?," Ecological Economics, Elsevier, vol. 70(8), pages 1536-1545, June.
  6. Beretti, Antoine & Figuières, Charles & Grolleau, Gilles, 2013. "Behavioral innovations: The missing capital in sustainable development?," Ecological Economics, Elsevier, vol. 89(C), pages 187-195.
  7. Alessandro Tavoni & Maja Schlüter & Simon Levin, 2011. "The survival of the conformist: social pressure and renewable resource management," Grantham Research Institute on Climate Change and the Environment Working Papers 35, Grantham Research Institute on Climate Change and the Environment.
  8. Markus Pasche, 2013. "What Can be Learned from Behavioural Economics for Environmental Policy?," Jena Economic Research Papers 2013-020, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  9. Elisabeth Gsottbauer & Jeroen Bergh, 2011. "Environmental Policy Theory Given Bounded Rationality and Other-regarding Preferences," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 49(2), pages 263-304, June.
  10. Alessandro Tavoni, 2009. "Incorporating Fairness Motives into the Impulse Balance Equilibrium and Quantal Response Equilibrium Concepts: An Application to 2x2 Games," Working Papers 2009.40, Fondazione Eni Enrico Mattei.
  11. Alessandro Tavoni & Maja Schlüter & Simon Levin, 2011. "The survival of the conformist: social pressure and renewable resource management," LSE Research Online Documents on Economics 37571, London School of Economics and Political Science, LSE Library.
  12. Nathalie Lazaric & Kevin Maréchal, 2010. "Overcoming inertia: insights from evolutionary economics into improved energy and climate policy," Post-Print hal-00452205, HAL.
  13. Welsch, Heinz, 2009. "Implications of happiness research for environmental economics," Ecological Economics, Elsevier, vol. 68(11), pages 2735-2742, September.
  14. John M. Gowdy, . "Valuing Nature For Climate Change Policy: From Discounting The Future To Truly Social Deliberation," Rensselaer Working Papers in Economics 1201, Rensselaer Polytechnic Institute, Department of Economics.
  15. Hirazawa, Makoto & Saito, Koichi & Yakita, Akira, 2011. "Effects of international sharing of pollution abatement burdens on income inequality among countries," Journal of Economic Dynamics and Control, Elsevier, vol. 35(10), pages 1615-1625, October.

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