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Nudging as an Environmental Policy Instrument

Author

Listed:
  • Carlsson, Fredrik

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Gravert, Christina

    (University of Copenhagen, Department of Economics)

  • Johansson-Stenman, Olof

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Kurz, Verena

Abstract

We discuss the use of green nudges – nudges intended to reduce negative externalities – as an environmental policy instrument. A review of empirical studies reveals that green nudges can have a sizeable impact on behavior and the environment, but that the effects are context dependent. In the policy discussion, drawing on both the empirical overview and basic welfare-economic models, it is emphasized that while green nudges seem to have a large potential, they offer no panacea for solving environmental problems. Instead, they should be seen as a policy instrument among others in the regulator’s toolbox. In particular, we discuss the potential role of nudging when environmental externalities can be dealt with using optimal Pigovian taxes, and when they cannot. Nudging has a greater potential when such taxes are not available or feasible.

Suggested Citation

  • Carlsson, Fredrik & Gravert, Christina & Johansson-Stenman, Olof & Kurz, Verena, 2019. "Nudging as an Environmental Policy Instrument," Working Papers in Economics 756, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0756
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    File URL: http://hdl.handle.net/2077/59896
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    Citations

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    Cited by:

    1. Akbulut-Yuksel, Mevlude & Boulatoff, Catherine, 2021. "The effects of a green nudge on municipal solid waste: Evidence from a clear bag policy," Journal of Environmental Economics and Management, Elsevier, vol. 106(C).
    2. J. Cristobal Ruiz-Tagle & Alejandra Schueftan, 2021. "Nudging for Cleaner Air: Experimental Evidence from an RCT on Wood Stove Usage," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(4), pages 713-743, August.
    3. Pablo Garcés, 2022. "Pragmatic behaviour: pragmatism as a philosophy for behavioural economics," Post-Print hal-03426533, HAL.
    4. Ropret Homar, Aja & Knežević Cvelbar, Ljubica, 2021. "The effects of framing on environmental decisions: A systematic literature review," Ecological Economics, Elsevier, vol. 183(C).
    5. Björn Bos & Moritz A. Drupp & Jasper N. Meya & Martin F. Quaas, 2020. "Moral Suasion and the Private Provision of Public Goods: Evidence from the COVID-19 Pandemic," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 76(4), pages 1117-1138, August.
    6. Löfgren, Åsa & Nordblom, Katarina, 2020. "A theoretical framework of decision making explaining the mechanisms of nudging," Journal of Economic Behavior & Organization, Elsevier, vol. 174(C), pages 1-12.
    7. Pablo Garcés-Velástegui, 2022. "On behavioral human development policies: how behavioral public policy adds to human development," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, vol. 91(5), pages 171-200, July.
    8. Sabrina Eisenbarth & Louis Graham & Anouk S. Rigterink, 2021. "Can Reminders of Rules Induce Compliance? Experimental Evidence from a Common Pool Resource Setting," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(4), pages 653-681, August.
    9. von Zahn, Moritz & Bauer, Kevin & Mihale-Wilson, Cristina & Jagow, Johanna & Speicher, Max & Hinz, Oliver, 2022. "The smart green nudge: Reducing product returns through enriched digital footprints & causal machine learning," SAFE Working Paper Series 363, Leibniz Institute for Financial Research SAFE, revised 2022.
    10. Pablo Garces-Velastegui, 2023. "Towards a behavioural capability approach: the contribution of behavioural economics to Amartya Sen’s framework," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 70(1), pages 101-120, March.
    11. Jana Eßer & Manuel Frondel & Stephan Sommer, 2023. "Soziale Normen und der Emissionsausgleich bei Flügen: Evidenz für deutsche Haushalte [Social Norms and Flight Emission Offsets: Evidence for German Households]," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer;Deutsche Statistische Gesellschaft - German Statistical Society, vol. 17(1), pages 71-99, March.

    More about this item

    Keywords

    nudge; environmental policy; behavior;
    All these keywords.

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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