IDEAS home Printed from https://ideas.repec.org/a/iaf/journl/y2021i4p109-114.html
   My bibliography  Save this article

The Role of Behavioral Economics in Providing Sustainable Demand for Eco-Friendly Products

Author

Listed:
  • Vladyslav Lazarenko

    (Institute of Agroecology and Environmental Management of NAAS, Kyiv, Ukraine)

  • Roman Hulinchuk

    (Institute of Agroecology and Environmental Management of NAAS, Kyiv, Ukraine)

  • Oleksandr Botsula

    (Institute of Agroecology and Environmental Management of NAAS, Kyiv, Ukraine)

Abstract

Behavioral economics theory, generated by a change in the established stereotypes of thinking of classical economists, examines processes and phenomena, taking into account psychological factors related to the processes of making irrational decisions by individuals. The purpose of the article is to determine the place and role of the behavioral economics theory in the formation of demand for eco-friendly food products, taking into account physiological primary and environmental needs and other cognitive factors that directly impact consumer behavior in a competitive market. The high degree of influence of irrational factors that are not under the control of the individual on the efficiency of the functioning of a business entity in the markets was revealed. The neoclassical economic and behavioral approaches were compared, and the shortcomings of the neoclassical economic theory and the problems that cannot be solved in practice by the neoclassical approach were identified. But these problems can be solved by using the behavioral approach. It was determined that one of the main economic components in environmentally oriented agriculture is the pricing process, or rather the impossibility of determining a reasonable price for food products. This aspect requires an assessment of rational economic indicators and consumers' level of readiness and ability to respond to changes in market conditions. Motivation significantly influences the choice of consumers in the markets. So, this study reveals the issues of the general motivational theory as part of the behavioral economics theory. Based on the assessment of the motivational aspect, the structural-logical motivational model of behavioral economics in ecologically oriented agriculture was formed; it includes cultural, economic, socio-informational factors.

Suggested Citation

  • Vladyslav Lazarenko & Roman Hulinchuk & Oleksandr Botsula, 2021. "The Role of Behavioral Economics in Providing Sustainable Demand for Eco-Friendly Products," Oblik i finansi, Institute of Accounting and Finance, issue 4, pages 109-114, December.
    • Handle: RePEc:iaf:journl:y:2021:i:4:p:109-114
    DOI: 10.33146/2307-9878-2021-4(94)-109-114
    as

    Download full text from publisher

    File URL: http://www.afj.org.ua/pdf/874-rol-povedinkovoi-ekonomiki-v-zabezpechenni-stalogo-popitu-na-ekologichno-bezpechnu-produkciyu.pdf
    Download Restriction: no
    File URL: http://www.afj.org.ua/en/article/874/
    Download Restriction: no
    File URL: https://libkey.io/10.33146/2307-9878-2021-4(94)-109-114?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Tomer, John F., 2007. "What is behavioral economics?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(3), pages 463-479, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Singh, Bharati, 2021. "A Bibliometric Analysis of Behavioral Finance and Behavioral Accounting," American Business Review, Pompea College of Business, University of New Haven, vol. 24(2), pages 198-230, November.
    2. Czap, Natalia V. & Czap, Hans J. & Khachaturyan, Marianna & Lynne, Gary D. & Burbach, Mark, 2012. "Walking in the shoes of others: Experimental testing of dual-interest and empathy in environmental choice," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 642-653.
    3. Tomasz Zalega, 2015. "Behavioural Economics as a New Trend in Economics – An Overview (Ekonomia behawioraln jako nowy nurt ekonomii - zarys problemtyki)," Research Reports, University of Warsaw, Faculty of Management, vol. 1(18), pages 7-25.
    4. Karbowski, Adam, 2011. "Sądy postulatywne w ekonomii głównego nurtu [Postulative Claims in Mainstream Economics]," MPRA Paper 69603, University Library of Munich, Germany.
    5. James, Simon, 2012. "The contribution of behavioral economics to tax reform in the United Kingdom," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(4), pages 468-475.
    6. Morris Altman, 2021. "Methodological challenges in Behavioural Economics: Towards a more holistic and empirically rooted economic science," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 5(S3), pages 19-33, October.
    7. Morris Altman, 2018. "Extending the theoretical lenses of behavioral economics through the sociological prisms of Gary Becker," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 2(1), pages 45-51, March.
    8. Steve J. Bickley & Benno Torgler, 2021. "Behavioural Economics, What Have we Missed? Exploring “Classical” Behavioural Economics Roots in AI, Cognitive Psychology, and Complexity Theory," CREMA Working Paper Series 2021-21, Center for Research in Economics, Management and the Arts (CREMA).
    9. Sergios Tzotzes & Dimitris Milonakis, 2021. "Paradigm Change or Assimilation? The Case of Behavioral Economics," Review of Radical Political Economics, Union for Radical Political Economics, vol. 53(1), pages 173-192, March.
    10. Polowczyk Jan, 2021. "A synthesis of evolutionary and behavioural economics," Economics and Business Review, Sciendo, vol. 7(3), pages 16-34, September.
    11. James, Simon, 2010. "Combining the contributions of behavioral economics and other social sciences in understanding taxation and tax reform," MPRA Paper 26289, University Library of Munich, Germany.
    12. Aneta Kargol-Wasiluk & Anna Wildowicz-Giegiel & Marian Zalesko, 2018. "The Evolution of the Economic Man. From Homo Oeconomicus to Homo Moralis," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 1, pages 33-57.
    13. Benjamin Miranda Tabak & Dimas Mateus Fazio, 2010. "Ambiguity Aversion and Illusion of Control in an Emerging Market: Are Individuals Subject to Behavioral Biases?," Chapters, in: Brian Bruce (ed.), Handbook of Behavioral Finance, chapter 20, Edward Elgar Publishing.
    14. Bronwyn Coate & Robert Hoffmann, 2022. "The behavioural economics of culture," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 46(1), pages 3-26, March.

    More about this item

    Keywords

    behavioral economics; environmental economics; agriculture; environmentally friendly production; sustainable development; market; consumer behavior;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iaf:journl:y:2021:i:4:p:109-114. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Serhiy Ostapchuk (email available below). General contact details of provider: https://edirc.repec.org/data/iafkvua.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.