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Models of Individual Behavior and Implications for Environmental Policy

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Author Info
Jeroen C.J.M. van den Bergh () (Vrije Universiteit Amsterdam)
Ada Ferrer-I-Carbonell (Rensselaer Polytechnic Institute)
Guiseppe Munda (Universitat Autonoma de Barcelona)

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Abstract

Most insights of environmental economics are in line with the standard neoclassical economic model of rational behaviour, formulated in terms of maximization of utility in general, or profits in particular. The standard theory of environmental policy is a case in point. However, the maximization hypothesis and its methodological foundation have been criticized on many grounds, related to a lack of either logical or empirical content. Moreover, over the years a great many alternative models of behaviour have been proposed. Both criticism and alternatives are surveyed here. In the context of environmental economics behavioural assumptions have been most significant for the development of economic valuation theory and environmental policy theory. The focus here will be on environmental policy theory.

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Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 98-121/3.

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Date of creation: 13 Nov 1998
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Handle: RePEc:dgr:uvatin:19980121

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  1. Boland, Lawrence A, 1979. "A Critique of Friedman's Critics," Journal of Economic Literature, American Economic Association, vol. 17(2), pages 503-22, June. [Downloadable!] (restricted)
  2. Mohr, Ernst, 1994. "Environmental norms, society, and economics," Ecological Economics, Elsevier, vol. 9(3), pages 229-239, April. [Downloadable!] (restricted)
  3. Munda, G. & Nijkamp, P. & Rietveld, P., 1994. "Qualitative multicriteria evaluation for environmental management," Ecological Economics, Elsevier, vol. 10(2), pages 97-112, July. [Downloadable!] (restricted)
  4. Foss, Nicolai Juul, 1993. "Theories of the Firm: Contractual and Competence Perspectives," Journal of Evolutionary Economics, Springer, vol. 3(2), pages 127-44, May.
  5. Stern, David I., 1997. "Limits to substitution and irreversibility in production and consumption: A neoclassical interpretation of ecological economics," Ecological Economics, Elsevier, vol. 21(3), pages 197-215, June. [Downloadable!] (restricted)
  6. Roe, Emery M., 1996. "Sustainable development and Girardian economics," Ecological Economics, Elsevier, vol. 16(2), pages 87-93, February. [Downloadable!] (restricted)
  7. Hirshleifer, Jack, 1985. "The Expanding Domain of Economics," American Economic Review, American Economic Association, vol. 75(6), pages 53-68, December. [Downloadable!] (restricted)
  8. Boland, Lawrence A, 1981. "On the Futility of Criticizing the Neoclassical Maximization Hypothesis," American Economic Review, American Economic Association, vol. 71(5), pages 1031-36, December. [Downloadable!] (restricted)
  9. Max-Neef, Manfred, 1995. "Economic growth and quality of life: a threshold hypothesis," Ecological Economics, Elsevier, vol. 15(2), pages 115-118, November. [Downloadable!] (restricted)
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  12. Hodgson, Geoffrey M, 1994. "Optimisation and Evolution: Winter's Critique of Friedman Revisited," Cambridge Journal of Economics, Oxford University Press, vol. 18(4), pages 413-30, August.
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  14. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-91, March. [Downloadable!] (restricted)
  15. Becker, Gary S, 1976. "Altruism, Egoism, and Genetic Fitness: Economics and Sociobiology," Journal of Economic Literature, American Economic Association, vol. 14(3), pages 817-26, September. [Downloadable!] (restricted)
  16. Martinez-Alier, Joan & Munda, Giuseppe & O'Neill, John, 1998. "Weak comparability of values as a foundation for ecological economics," Ecological Economics, Elsevier, vol. 26(3), pages 277-286, September. [Downloadable!] (restricted)
  17. Camerer, Colin F, 1997. "Progress in Behavioral Game Theory," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 167-88, Fall. [Downloadable!] (restricted)
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  1. Sigrid Stagl, 1999. "Delinking Economic Growth from Environmental Degradation? A Literature Survey on the Environmental Kuznets Curve Hypothesis," Working Papers geewp06, Vienna University of Economics and B.A. Research Group: Growth and Employment in Europe: Sustainability and Competitiveness. [Downloadable!]
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