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The Supply of Environmentalism: Psychological Interventions and Economics

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  • Edward L. Glaeser
Abstract
Long before behavioral economists began to combine economic theory with discoveries from psychology, environmentalists were nudging and framing and pushing their cause through psychological interventions. These interventions appear to have changed behavior by altering beliefs, norms, and preferences. However, because psychological interventions are often coarse, they have also resulted in inadvertent, offsetting side effects. This article discusses the interactions between environmental preference-making and economics, and then it examines three areas of environmental interest —electric cars, recycling, and local conservation efforts—where psychological interventions have created strong, widespread, and simple environmental views. However, in all three cases, simple environmental rules of thumb can lead to significant adverse environmental side effects. Local environmentalism, for example, may increase carbon emissions by pushing development from low emission areas, like coastal California, to high-emission areas elsewhere in the United States. I conclude with a discussion of a fourth issue: how economic analysis of the political supply of ideas can be helpful in understanding the remarkable disparity of views concerning climate change. (JEL: D00, Q5)

Suggested Citation

  • Edward L. Glaeser, 2014. "The Supply of Environmentalism: Psychological Interventions and Economics," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 8(2), pages 208-229.
    • Handle: RePEc:oup:renvpo:v:8:y:2014:i:2:p:208-229.
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    File URL: http://hdl.handle.net/10.1093/reep/reu005
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    References listed on IDEAS

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    1. Jonathan E. Hughes & Christopher R. Knittel & Daniel Sperling, 2008. "Evidence of a Shift in the Short-Run Price Elasticity of Gasoline Demand," The Energy Journal, International Association for Energy Economics, vol. 29(1), pages 113-134.
    2. Jonathan E. Hughes & Christopher R. Knittel & Daniel Sperling, 2008. "Evidence of a Shift in the Short-Run Price Elasticity of Gasoline Demand," The Energy Journal, International Association for Energy Economics, vol. 29(1), pages 113-134.
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    Cited by:

    1. Ingrid Ott & Susanne Soretz, 2018. "Green Attitude and Economic Growth," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 70(4), pages 757-779, August.
    2. Thierry Madiès & Ornella Tarola & Emmanuelle Taugourdeau, 2022. "Tax haven, pollution haven or both?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(6), pages 1527-1560, December.
    3. Andrea Marais-Potgieter & Andrew Thatcher, 2020. "Identification of Six Emergent Types Based on Cognitive and Affective Constructs that Explain Individuals’ Relationship with the Biosphere," Sustainability, MDPI, vol. 12(18), pages 1-28, September.
    4. Laure Kuhfuss & Raphaële Préget & Sophie Thoyer & Nick Hanley & Philippe Le Coent & Mathieu Désolé, 2016. "Nudges, Social Norms, and Permanence in Agri-environmental Schemes," Land Economics, University of Wisconsin Press, vol. 92(4), pages 641-655.
    5. Marco A. Marini & Ornella Tarola & Jacques-François Thisse, 2020. "Is Environmentalism the Right Strategy to Decarbonize the World?," Working Papers 2020.31, Fondazione Eni Enrico Mattei.
    6. Maccarrone, Giovanni & Marini, Marco A. & Tarola, Ornella, 2023. "Shop Until You Drop: the Unexpected Effects of Anticonsumerism and Environmentalism," FEEM Working Papers 330384, Fondazione Eni Enrico Mattei (FEEM).
    7. Brian Chi-ang Lin & Siqi Zheng & Marie Briguglio, 2016. "Household Cooperation In Waste Management: Initial Conditions And Intervention," Journal of Economic Surveys, Wiley Blackwell, vol. 30(3), pages 497-525, July.
    8. Broberg, Thomas & Kažukauskas, Andrius, 2021. "Information policies and biased cost perceptions - The case of Swedish residential energy consumption," Energy Policy, Elsevier, vol. 149(C).
    9. Patt, Anthony & Aplyn, David & Weyrich, Philippe & van Vliet, Oscar, 2019. "Availability of private charging infrastructure influences readiness to buy electric cars," Transportation Research Part A: Policy and Practice, Elsevier, vol. 125(C), pages 1-7.
    10. Mariateresa Silvi & Emilio Padilla Rosa, 2017. "Pro-environmental behavior: On the interplay of intrinsic motivations and external conditions," Working Papers wpdea1703, Department of Applied Economics at Universitat Autonoma of Barcelona.
    11. Yokoo, Hide-Fumi & Harada, Tetsuya, 2023. "What makes green persuasion effective? Evidence from a community-financed sanitation program in Indonesia," Resource and Energy Economics, Elsevier, vol. 73(C).
    12. Hunt Allcott & Judd B. Kessler, 2015. "The Welfare Effects of Nudges: A Case Study of Energy Use Social Comparisons," NBER Working Papers 21671, National Bureau of Economic Research, Inc.
    13. Jean J. Gabszewicz & Ornella Tarola, 2021. "Introduction to the special issue: green economy and environmental policies in oligopoly markets," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 48(1), pages 1-4, March.
    14. Briguglio, Marie & Delaney, Liam & Wood, Alex, 2018. "Partisanship, priming and participation in public-good schemes," European Journal of Political Economy, Elsevier, vol. 55(C), pages 136-150.
    15. Marco A. Marini & Ornella Tarola & Jacques-François Thisse, 2022. "When is Environmentalism Good for the Environment?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(1), pages 1-28, May.

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    More about this item

    JEL classification:

    • D00 - Microeconomics - - General - - - General
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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