By Frank Beckenbach, Walter Kahlenborn

This e-book provides crucial insights on environmental coverage derived from behavioral economics. The authors reveal the potential for behavioral economics to force environmental defense and to generate concrete proposals for the effective layout of coverage tools. furthermore, designated tips on tips to use “nudges” and similar tools to maneuver and society towards a sustainable path are awarded. This e-book addresses the wishes of environmental economists, behavioral economists and environmental policymakers, in addition to all readers attracted to the intersection among behavioral economics and environmental policy.

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These studies refer to different aspects of the decision anomalies. Venkatachalam (2008) and Shogren and Taylor (2008) point out that taking the divergence from strict rationality into account has a twofold consequence for the design of environmental policy: regarding the interactive affects beyond selfish behavior opens up possibilities for a self organized management of common environmental goods (via negotiations) on one side (cf. also the contribution of Gawel in part II of this volume); on the other side especially the endowment effect is seen as a source for a systematic divergence from optimal solutions in negotiations and emission trading depending on the initial 2 Innovative Behavioral Approaches to Analyze the Incentives of.

Patterns of behavior observed in the laboratory as well as in the field will be dealt with under the heading “effect analysis”. Attempts to go beyond these observations by formulating a theoretical approach are presented as “concepts”. Not all of the observations and theoretical concepts picked up here are ‘new’ senso strictu. Some of them have been known for a longer time but they are to a large degree ignored due to the direction of scientific attention at the time of their emergence. 4 These effects can be distinguished as three (partially overlapping) groups: (i) the group of “decision anomalies”5 is characterized by the divergence from the rationality standard of the homo oeconomicus approach; (ii) the group of “decision routines” encompasses procedures to transform the deliberate decision process into a quasi-automatic process including a significant reduction in deliberation effort; (iii) whereas the groups mentioned so far focus on the isolated decision process, the group of “decision affects” is related to effects including a social orientation of the decision agents.

Suppressing something that would be done is essentially different from enforcing something that wouldn’t be done. 20 Fehr and Falk (2002) only take multiple equilibria into account (op. , p. 707). Depending on the shape of the reaction function (depicting the individual compliance as a function of the believed compliance of others) also cyclical and even chaotic patterns can be included. 21 Due to this specific role of competence, Fehr and Falk (2002, 713ff) argue that motivational crowding out should be confined to incentive effects for fulfilling ambitious tasks and that this should not be confused with uncertainty and interactive effects dealt with in Sect.

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