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The Use of Green Nudges as an Environmental Policy Instrument

Author

Listed:
  • Fredrik Carlsson
  • Christina Gravert
  • Olof Johansson-Stenman
  • Verena Kurz

Abstract

This article discusses the use of green nudges—behavioral interventions aimed at reducing negative externalities—as an environmental policy instrument. We present a new framework for classifying nudges according to how they affect behavior. Pure nudges change the choice environment to guide behavior unobtrusively. Moral nudges trigger a psychological reaction to encourage behavior change. Our review of empirical studies reveals that green nudges, pure or moral, can have a significant impact on behavior and the environment but that the effects are highly context dependent. On the basis of both our review and basic welfare economics models, we discuss key factors for policy makers to consider when choosing between implementing a green nudge and implementing conventional policy instruments.

Suggested Citation

  • Fredrik Carlsson & Christina Gravert & Olof Johansson-Stenman & Verena Kurz, 2021. "The Use of Green Nudges as an Environmental Policy Instrument," Review of Environmental Economics and Policy, University of Chicago Press, vol. 15(2), pages 216-237.
    • Handle: RePEc:ucp:renvpo:doi:10.1086/715524
    DOI: 10.1086/715524
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    Cited by:

    1. Qin, Botao & Shogren, Jason, 2023. "Endogenous Social Norms, Mechanism Design, and Payment for Environmental Services," MPRA Paper 112878, University Library of Munich, Germany.
    2. Pathak, Santosh & Wang, Hua & Adusumilli, Naveen C., 2022. "Contract Non-compliance and Moral Hazard: Evidence from Cost-share Programs in Louisiana, USA," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322324, Agricultural and Applied Economics Association.
    3. Damgaard, Mette Trier, 2021. "A decade of nudging: What have we learned?," Nationaløkonomisk tidsskrift, Nationaløkonomisk Forening, vol. 2021(1), pages 1-21.
    4. Ankinée KIRAKOZIAN & Raphaël CHIAPPINI & Nabila ARFAOUI, 2023. "Nudging employees for greener mobility A field experiment," Bordeaux Economics Working Papers 2023-09, Bordeaux School of Economics (BSE).
    5. Jakob Enlund & David Andersson & Fredrik Carlsson, 2023. "Individual Carbon Footprint Reduction: Evidence from Pro-environmental Users of a Carbon Calculator," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 86(3), pages 433-467, November.
    6. R. Aaron Hrozencik & Jordan F. Suter & Paul J. Ferraro & Nathan Hendricks, 2024. "Social comparisons and groundwater use: Evidence from Colorado and Kansas," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(2), pages 946-966, March.
    7. Leonhard Lades & Federica Nova, 2022. "Ethical Considerations when using Behavioural Insights to Reduce Peoples Meat Consumption," Working Papers 202209, Geary Institute, University College Dublin.
    8. Antinyan, Armenak & Corazzini, Luca, 2021. "Money does it better! Economic incentives, nudging interventions and reusable shopping bags: Evidence from a natural field experiment," Cardiff Economics Working Papers E2021/29, Cardiff University, Cardiff Business School, Economics Section.
    9. Carlsson, Fredrik & Johansson-Stenman, Olof & Kataria, Mitesh, 2024. "How Much Liberty Should We Have? Citizens versus Experts on Regulating Externalities and Internalities," Working Papers in Economics 841, University of Gothenburg, Department of Economics.
    10. Meier, Johanna & Andor, Mark A. & Doebbe, Friederike C. & Haddaway, Neal R. & Reisch, Lucia A., 2022. "Review: Do green defaults reduce meat consumption?," Food Policy, Elsevier, vol. 110(C).
    11. Fanghella, Valeria & D'Adda, Giovanna & Tavoni, Massimo, 2022. "Evaluating the impact of technological renovation and competition on energy consumption in the workplace," Journal of Environmental Economics and Management, Elsevier, vol. 114(C).
    12. Luca A. Panzone & Natasha Auch & Daniel John Zizzo, 2024. "Nudging the Food Basket Green: The Effects of Commitment and Badges on the Carbon Footprint of Food Shopping," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(1), pages 89-133, January.
    13. Antinyan, Armenak & Corazzini, Luca, 2023. "Breaking the Bag Habit: Testing Interventions to Reduce Plastic Bag Demand in a Developing Country," Cardiff Economics Working Papers E2023/7, Cardiff University, Cardiff Business School, Economics Section.
    14. Jessoe, Katrina & Lade, Gabriel E. & Loge, Frank & Spang, Edward, 2021. "Residential water conservation during drought: Experimental evidence from three behavioral interventions," Journal of Environmental Economics and Management, Elsevier, vol. 110(C).
    15. Gravert, Christina & Olsson Collentine, Linus, 2021. "When nudges aren’t enough: Norms, incentives and habit formation in public transport usage," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 1-14.
    16. Esther Landells & Anjum Naweed & David H. Pearson & Gamithri G. Karunasena & Samuel Oakden, 2022. "Out of Sight, Out of Mind: Using Post-Kerbside Organics Treatment Systems to Engage Australian Communities with Pro-Environmental Household Food Waste Behaviours," Sustainability, MDPI, vol. 14(14), pages 1-17, July.
    17. Leonhard K. Lades & Ewa Zawojska & Robert J. Johnston & Nick Hanley & Liam Delaney & Mikołaj Czajkowski, 2022. "Anomalies or Expected Behaviors? Understanding Stated Preferences and Welfare Implications in Light of Contemporary Behavioral Theory," Working Papers 2022-20, Faculty of Economic Sciences, University of Warsaw.
    18. Rupayan Pal & Preksha Jain & Prasenjit Banerjee, 2022. "The Environment and corruption: Monetary vs. Non-monetary Incentives and the first best," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2022-011, Indira Gandhi Institute of Development Research, Mumbai, India.
    19. Lohmann, Paul M. & Gsottbauer, Elisabeth & Doherty, Anya & Kontoleon, Andreas, 2022. "Do carbon footprint labels promote climatarian diets? Evidence from a large-scale field experiment," Journal of Environmental Economics and Management, Elsevier, vol. 114(C).
    20. Shane Sanders, 2023. "Environmental Status Goods and Market-Based Conservation: An Arm of Ostrom’s Polycentric Approach?," Sustainability, MDPI, vol. 15(5), pages 1-9, February.
    21. Perino, Grischa & Schwirplies, Claudia, 2022. "Meaty arguments and fishy effects: Field experimental evidence on the impact of reasons to reduce meat consumption," Journal of Environmental Economics and Management, Elsevier, vol. 114(C).
    22. Preksha Jain & Rupayan Pal, 2023. "Corruption-proof minimum regulation for `Zero emission': Status incentives - Bane or boon?," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2023-009, Indira Gandhi Institute of Development Research, Mumbai, India.
    23. G. Cornelis van Kooten & Rebecca Zanello, 2023. "Carbon offsets and agriculture: Options, obstacles, and opinions," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 71(3-4), pages 375-391, September.

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