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Environmentalism in the light of Behavioral Economics

Author

Listed:
  • Halkos, George
  • Gkargkavouzi, Anastasia

Abstract

Behavioral environmental economics (BEE) is an emerging field that combines principles from behavioral and environmental economics along with psychological theory to study how human behavior influences environmental issues. It recognizes that human behavior often deviates from the rational actor model assumed in traditional environmental economics and seeks to understand the psychological, social, and emotional factors that influence people's decisions related to the environment. By gaining insights intothe human decision-making mechanism, BEE can better explain economically relevant environmental behavior and increase the predictive power of existing models. The fieldguidesthe design of effective and tailored-specific policy interventions that work with human behavioral tendencies, such as using defaults, framing, and social reinforcement to "nudge" people toward environmentally friendly choices. While behavioral insights can complement traditional policy tools, broader reforms are also needed to achieve sustainability. New trends derived from interdisciplinary research combining Environmental Psychology and Behavioral Economics are discussed. Overall, BEE offers a more realistic understanding of human decision-making and can help maximize the environmental benefits achieved through limited resources.

Suggested Citation

  • Halkos, George & Gkargkavouzi, Anastasia, 2024. "Environmentalism in the light of Behavioral Economics," MPRA Paper 120752, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:120752
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    References listed on IDEAS

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    2. Gkargkavouzi, Anastasia & Halkos, George & Matsiori, Steriani, 2019. "How do motives and knowledge relate to intention to perform environmental behavior? Assessing the mediating role of constraints," Ecological Economics, Elsevier, vol. 165(C), pages 1-1.
    3. George Halkos & Dimitrios Bousinakis, 2010. "The effect of stress and satisfaction on productivity," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 59(5), pages 415-431, June.
    4. 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.
    5. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9-10), pages 1082-1095, October.
    6. Halkos, George & Managi, Shunsuke, 2023. "New developments in the disciplines of environmental and resource economics," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 513-522.
    7. Halkos, George & Matsiori, Steriani, 2018. "Environmental attitudes and preferences for coastal zone improvements," Economic Analysis and Policy, Elsevier, vol. 58(C), pages 153-166.
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    Keywords

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    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q59 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Other

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