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IW-Analyse No. 146 30. December 2021 Dominik H. Enste / Jennifer Potthoff Behavioral Economics and Climate Protection: Better regulation and green nudges for more sustainability

Protecting the climate is one of the greatest challenges our society is currently facing. In view of the heated political and social discussions surrounding this topic, the question naturally arises as to whether behavioral-economic insights can be used to sensitize German society to the dangers of climate change and to motivate it towards more sustainability.

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Better regulation and green nudges for more sustainability
IW-Analyse No. 146 30. December 2021 Dominik H. Enste / Jennifer Potthoff

Behavioral Economics and Climate Protection: Better regulation and green nudges for more sustainability

Dominik H. Enste / Jennifer Potthoff German Economic Institute (IW) German Economic Institute (IW)

Protecting the climate is one of the greatest challenges our society is currently facing. In view of the heated political and social discussions surrounding this topic, the question naturally arises as to whether behavioral-economic insights can be used to sensitize German society to the dangers of climate change and to motivate it towards more sustainability.

The field of behavioral economics provides empirical evidence of psychological factors that influence and even hinder sustainable behavior, ultimately leading to a gap between the will to act sustainably and actual behavior. Cognitive barriers, different social factors and group affiliations result in a complex system of diverse behavioral patterns, environmental attitudes, needs and expectations that must be considered when designing environmental policy instruments. People can be motivated to behave more ecologically without restricting their freedom of choice by the intelligent and effective use of green nudges rather than prohibitions. Identifying an effective, target-group-specific and ethical policy for counteracting climate change and encouraging more sustainable behavior requires an interdisciplinary approach combining behavioral-economic empiricism with ethical insights.

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Better regulation and green nudges for more sustainability
IW-Analyse No. 146 30. December 2021 Dominik H. Enste / Jennifer Potthoff

Behavioral Economics and Climate Protection: Better regulation and green nudges for more sustainability

Dominik H. Enste / Jennifer Potthoff German Economic Institute (IW) German Economic Institute (IW)

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The Honesty-Attitude-Behavior Gap: A Cross-Country Comparison
IW-Trends No. 3 29. September 2026 Dominik Enste / Jennifer Potthoff / Augustin Renz

The Honesty-Attitude-Behavior Gap: A Cross-Country Comparison

Honesty reduces transaction costs and is therefore a prerequisite for effective economic cooperation.

Dominik Enste / Jennifer Potthoff / Augustin Renz IW

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IW-Trends No. 4 10. January 2026 Jennifer Potthoff / Rebecca Gabel

Life Satisfaction in Germany: Trends, Influencing Factors and Political Relevance

Despite their country’s multiple crises, Germans' subjective well-being remains overall buoyant and is currently reaching historic highs similar to those of the 2010s.

Jennifer Potthoff / Rebecca Gabel IW

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