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Behavioral Environmental Economics

Author

Listed:
  • Matthias Rodemeier
  • Christoph Semken

Abstract

This paper reviews the growing field of behavioral environmental economics: the study of how cognition, beliefs, and social preferences shape sustainable behavior and the effectiveness and political feasibility of environmental policy. We synthesize recent theoretical, experimental, and empirical contributions, with emphasis on sustainable consumption, green investment, firm behavior, and political economy. We highlight design lessons and open questions for policy and research.

Suggested Citation

  • Matthias Rodemeier & Christoph Semken, 2026. "Behavioral Environmental Economics," CESifo Working Paper Series 12847, CESifo.
    • Handle: RePEc:ces:ceswps:_12847
    as

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    File URL: https://www.ifo.de/DocDL/cesifo1_wp12847.pdf
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    More about this item

    Keywords

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    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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