IDEAS home Printed from https://ideas.repec.org/p/atv/wpaper/2007.html
   My bibliography  Save this paper

Establishing Sustainable Consumption - How Future Policies Can Channel Consumer Preferences

Author

Listed:
  • Joshua Henkel
  • Georg Schwesinger

Abstract

This paper relates cultural evolution theory and social learning dynamics to induced preference change in consumption behavior. We argue that the promotion of sustainable consumption via preference change is a cornerstone of future policy and should complement standard regimentations such as regulation for harm reduction in production and the investment in green technologies. The application of cultural evolution mechanisms may act as a key element for implementing future societal acceptance of responsible individual consumption and a trigger for the self-transformation of the economy. We will discuss what kind of policies can be used in future to channel our consumption preferences and build up an economic "presents for the future" scenario that will go beyond existing policy tools. An already established tool in behavioral economics that provides an elegant, cheap and often effective measure to promote green behavior is "green nudging." However, it comes at the cost of being perceived as paternalistic and non-transparent. In addition, nudging requires the alteration of a very specific choice architecture for every single consumption decision scenario and is therefore limited in its scope of application and - most importantly - long-term effectiveness. Here we offer a more general behavioral approach for future environmental policy. We argue that preference change for consumption can be induced by policy makers using tools drawn from cultural evolution. We develop concrete scenarios for policy makers to induce pro-environmental preferences within consumer populations. We argue that our approach is likely to induce alteration of existing and the establishment of new consumption patterns on a much larger scale than nudging and will be more successful in establishing permanent future effects.

Suggested Citation

  • Joshua Henkel & Georg Schwesinger, 2020. "Establishing Sustainable Consumption - How Future Policies Can Channel Consumer Preferences," Bremen Papers on Economics & Innovation 2007, University of Bremen, Faculty of Business Studies and Economics.
  • Handle: RePEc:atv:wpaper:2007
    DOI: https://doi.org/10.26092/elib/18
    as

    Download full text from publisher

    File URL: https://media.suub.uni-bremen.de/bitstream/elib/4233/6/2020_Establishing%20Sustainable%20Consumption%20%e2%80%93%20How%20Future%20Policies%20Can%20Channel%20Consumer%20Preferences.pdf
    Download Restriction: no

    File URL: https://libkey.io/https://doi.org/10.26092/elib/18?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. Christian Cordes, 2019. "The promises of a naturalistic approach: how cultural evolution theory can inform (evolutionary) economics," Journal of Evolutionary Economics, Springer, vol. 29(4), pages 1241-1262, September.
    2. Clee, Mona A & Wicklund, Robert A, 1980. "Consumer Behavior and Psychological Reactance," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 6(4), pages 389-405, March.
    3. Gowdy, John M., 2008. "Behavioral economics and climate change policy," Journal of Economic Behavior & Organization, Elsevier, vol. 68(3-4), pages 632-644, December.
    4. Schubert, Christian & Cordes, Christian, 2013. "Role models that make you unhappy: light paternalism, social learning, and welfare," Journal of Institutional Economics, Cambridge University Press, vol. 9(2), pages 131-159, June.
    5. Norton, Bryan & Costanza, Robert & Bishop, Richard C., 1998. "The evolution of preferences: Why 'sovereign' preferences may not lead to sustainable policies and what to do about it," Ecological Economics, Elsevier, vol. 24(2-3), pages 193-211, February.
    6. Babutsidze, Zakaria & Chai, Andreas, 2018. "Look at me Saving the Planet! The Imitation of Visible Green Behavior and its Impact on the Climate Value-Action Gap," Ecological Economics, Elsevier, vol. 146(C), pages 290-303.
    7. Woersdorfer, Julia Sophie & Kaus, Wolfhard, 2011. "Will nonowners follow pioneer consumers in the adoption of solar thermal systems? Empirical evidence for northwestern Germany," Ecological Economics, Elsevier, vol. 70(12), pages 2282-2291.
    8. Eliana La Ferrara & Alberto Chong & Suzanne Duryea, 2012. "Soap Operas and Fertility: Evidence from Brazil," American Economic Journal: Applied Economics, American Economic Association, vol. 4(4), pages 1-31, October.
    9. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9-10), pages 1082-1095, October.
    10. Hunt Allcott & Todd Rogers, 2014. "The Short-Run and Long-Run Effects of Behavioral Interventions: Experimental Evidence from Energy Conservation," American Economic Review, American Economic Association, vol. 104(10), pages 3003-3037, October.
    11. Martin Binder & Leonhard K. Lades, 2015. "Autonomy-Enhancing Paternalism," Kyklos, Wiley Blackwell, vol. 68(1), pages 3-27, February.
    12. Cass R. Sunstein & Richard H. Thaler, 2003. "Libertarian paternalism is not an oxymoron," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 48(Jun).
    13. Herman E. Daly, 1972. "In Defense of a Steady-State Economy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(5), pages 945-954.
    14. Buenstorf, Guido & Cordes, Christian, 2008. "Can sustainable consumption be learned? A model of cultural evolution," Ecological Economics, Elsevier, vol. 67(4), pages 646-657, November.
    15. Sexton, Steven E. & Sexton, Alison L., 2014. "Conspicuous conservation: The Prius halo and willingness to pay for environmental bona fides," Journal of Environmental Economics and Management, Elsevier, vol. 67(3), pages 303-317.
    16. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9), pages 1082-1095.
    17. Garmendia, Eneko & Stagl, Sigrid, 2010. "Public participation for sustainability and social learning: Concepts and lessons from three case studies in Europe," Ecological Economics, Elsevier, vol. 69(8), pages 1712-1722, June.
    18. Welsch, Heinz & Kühling, Jan, 2009. "Determinants of pro-environmental consumption: The role of reference groups and routine behavior," Ecological Economics, Elsevier, vol. 69(1), pages 166-176, November.
    19. Julia Sophie Woersdorfer, 2010. "When Do Social Norms Replace Status‐Seeking Consumption? An Application To The Consumption Of Cleanliness," Metroeconomica, Wiley Blackwell, vol. 61(1), pages 35-67, February.
    20. Richard H. Thaler & Cass R. Sunstein, 2023. "Libertarian paternalism," Chapters, in: Cass R. Sunstein & Lucia A. Reisch (ed.), Research Handbook on Nudges and Society, chapter 1, pages 10-16, Edward Elgar Publishing.
    21. Paul J. Ferraro & Juan Jose Miranda & Michael K. Price, 2011. "The Persistence of Treatment Effects with Norm-Based Policy Instruments: Evidence from a Randomized Environmental Policy Experiment," American Economic Review, American Economic Association, vol. 101(3), pages 318-322, May.
    22. Schubert, Christian, 2017. "Green nudges: Do they work? Are they ethical?," Ecological Economics, Elsevier, vol. 132(C), pages 329-342.
    23. Fredrik Carlsson & Olof Johansson-Stenman, 2012. "Behavioral Economics and Environmental Policy," Annual Review of Resource Economics, Annual Reviews, vol. 4(1), pages 75-99, August.
    24. Jin, Ye & Li, Hongbin & Wu, Binzhen, 2011. "Income inequality, consumption, and social-status seeking," Journal of Comparative Economics, Elsevier, vol. 39(2), pages 191-204, June.
    25. Ulrich Witt, 2001. "special issue: Learning to consume - A theory of wants and the growth of demand," Journal of Evolutionary Economics, Springer, vol. 11(1), pages 23-36.
    26. Cordes, Christian & Schwesinger, Georg, 2014. "Technological diffusion and preference learning in the world of Homo sustinens: The challenges for politics," Ecological Economics, Elsevier, vol. 97(C), pages 191-200.
    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. Christian Cordes & Joshua Henkel, 2022. "Enhanced "Green Nudging": Tapping the Channels of Cultural Transmission," Bremen Papers on Economics & Innovation 2208, University of Bremen, Faculty of Business Studies and Economics.
    2. Babutsidze, Zakaria & Chai, Andreas, 2018. "Look at me Saving the Planet! The Imitation of Visible Green Behavior and its Impact on the Climate Value-Action Gap," Ecological Economics, Elsevier, vol. 146(C), pages 290-303.
    3. Schubert, Christian, 2017. "Green nudges: Do they work? Are they ethical?," Ecological Economics, Elsevier, vol. 132(C), pages 329-342.
    4. Christian Cordes, 2019. "The promises of a naturalistic approach: how cultural evolution theory can inform (evolutionary) economics," Journal of Evolutionary Economics, Springer, vol. 29(4), pages 1241-1262, September.
    5. Rachel Croson & Nicolas Treich, 2014. "Behavioral Environmental Economics: Promises and Challenges," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(3), pages 335-351, July.
    6. Cristiano Codagnone & Giuseppe Alessandro Veltri & Francesco Bogliacino & Francisco Lupiáñez-Villanueva & George Gaskell & Andriy Ivchenko & Pietro Ortoleva & Francesco Mureddu, 2016. "Labels as nudges? An experimental study of car eco-labels," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 33(3), pages 403-432, December.
    7. Elena Kantorowicz‐Reznichenko & Jaroslaw Kantorowicz, 2021. "To follow or not to follow the herd? Transparency and social norm nudges," Kyklos, Wiley Blackwell, vol. 74(3), pages 362-377, August.
    8. Leonhard Lades & Federica Nova, 2022. "Ethical Considerations when using Behavioural Insights to Reduce Peoples Meat Consumption," Working Papers 202209, Geary Institute, University College Dublin.
    9. Cordes, Christian & Schwesinger, Georg, 2014. "Technological diffusion and preference learning in the world of Homo sustinens: The challenges for politics," Ecological Economics, Elsevier, vol. 97(C), pages 191-200.
    10. Joseph,George & Ayling,Sophie Charlotte Emi & Miquel-Florensa,Pepita & Bejarano,Hernán D. & Cardona,Alejandra Quevedo, 2021. "Behavioral Insights in Infrastructure Sectors : A Survey," Policy Research Working Paper Series 9704, The World Bank.
    11. Becchetti, Leonardo & Salustri, Francesco & Scaramozzino, Pasquale, 2020. "Nudging and corporate environmental responsibility: A natural field experiment," Food Policy, Elsevier, vol. 97(C).
    12. Nathalie Lazaric & Fabrice Guel & Jean Belin & Vanessa Oltra & Sébastien Lavaud & Ali Douai, 2020. "Determinants of sustainable consumption in France: the importance of social influence and environmental values," Journal of Evolutionary Economics, Springer, vol. 30(5), pages 1337-1366, November.
    13. Bhanot, Syon P., 2017. "Rank and response: A field experiment on peer information and water use behavior," Journal of Economic Psychology, Elsevier, vol. 62(C), pages 155-172.
    14. Lucas, Sterenn & Salladarré, Frédéric & Brécard, Dorothée, 2018. "Green consumption and peer effects: Does it work for seafood products?," Food Policy, Elsevier, vol. 76(C), pages 44-55.
    15. Ghesla, Claus & Grieder, Manuel & Schubert, Renate, 2020. "Nudging the poor and the rich – A field study on the distributional effects of green electricity defaults," Energy Economics, Elsevier, vol. 86(C).
    16. Kandul, Serhiy & Lanz, Bruno, 2021. "Public good provision, in-group cooperation and out-group descriptive norms: A lab experiment," Journal of Economic Psychology, Elsevier, vol. 85(C).
    17. Braganza, Oliver, 2022. "Market paternalism: Do people really want to be nudged towards consumption?," ifso working paper series 23, University of Duisburg-Essen, Institute for Socioeconomics (ifso).
    18. Egebark, Johan & Ekström, Mathias, 2016. "Can indifference make the world greener?," Journal of Environmental Economics and Management, Elsevier, vol. 76(C), pages 1-13.
    19. Farrow, Katherine & Grolleau, Gilles & Ibanez, Lisette, 2017. "Social Norms and Pro-environmental Behavior: A Review of the Evidence," Ecological Economics, Elsevier, vol. 140(C), pages 1-13.
    20. Luca Congiu & Ivan Moscati, 2022. "A review of nudges: Definitions, justifications, effectiveness," Journal of Economic Surveys, Wiley Blackwell, vol. 36(1), pages 188-213, February.

    More about this item

    Keywords

    Future Policy; Microeconomic Policy; Sustainable Consumption; Cultural Evolution;
    All these keywords.

    JEL classification:

    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation

    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:atv:wpaper:2007. 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: Matheus Eduardo Leusin (email available below). General contact details of provider: https://edirc.repec.org/data/iibrede.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.