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Dominik H. Enste / Jennifer Potthoff IW-Analyse No. 146 30. December 2021 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
Dominik H. Enste / Jennifer Potthoff IW-Analyse No. 146 30. December 2021

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

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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
Dominik H. Enste / Jennifer Potthoff IW-Analyse No. 146 30. December 2021

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

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German Economic Institute (IW) German Economic Institute (IW)

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Behavioral economic measures for freedom-preserving energy conservation
Dominik Enste / Julia Hensen / Jennifer Potthoff IW-Policy Paper No. 2 20. February 2023

Does Nudging Help in the crisis?: Behavioral economic measures for freedom-preserving energy conservation

In view of the impending gas shortage, private households are called upon to reduce their gas and energy consumption. The moral appeals of those in power harbor the danger that people will react with reactance instead of the desired change in behavior.

IW

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Dominik Enste / Hans-Peter Klös IW-Policy Paper No. 27 1. December 2021

Growth, Equity and Sustainability

In the last two decades, a debate has unfolded around the relationship between growth and well-being that has produced numerous new concepts, indicators and sets of targets. This increasingly includes an emphasis on sustainability concepts.

IW

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