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Models of Individual Behavior and Implications for Environmental Policy

Author

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  • Jeroen C.J.M. van den Bergh

    () (Vrije Universiteit Amsterdam)

  • Ada Ferrer-I-Carbonell

    (Rensselaer Polytechnic Institute)

  • Guiseppe Munda

    (Universitat Autonoma de Barcelona)

Abstract

Most insights of environmental economics are in line with the standard neoclassicaleconomic model of rational behaviour, formulated in terms of maximization of utility ingeneral, or profits in particular. The standard theory of environmental policy is a casein point. However, the maximization hypothesis and its methodological foundation havebeen 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 environmentaleconomics behavioural assumptions have been most significant for the development ofeconomic valuation theory and environmental policy theory. The focus here will be onenvironmental policy theory.

Suggested Citation

  • Jeroen C.J.M. van den Bergh & Ada Ferrer-I-Carbonell & Guiseppe Munda, 1998. "Models of Individual Behavior and Implications for Environmental Policy," Tinbergen Institute Discussion Papers 98-121/3, Tinbergen Institute.
  • Handle: RePEc:tin:wpaper:19980121
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    References listed on IDEAS

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    Cited by:

    1. Jeroen van den Bergh & John Gowdy, 2000. "Evolutionary Theories in Environmental and Resource Economics: Approaches and Applications," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 17(1), pages 37-57, September.

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