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Do economic preferences predict pro-environmental behaviour?

Author

Listed:
  • Leonhard K. Lades

    (UCD Environmental Policy & Geary Institute for Public Policy, University College Dublin)

  • Kate Laffan

    (UCD School of Economics & Geary Institute for Public Policy, University College Dublin)

  • Till O. Weber

    (Newcastle University Business School, Newcastle University)

Abstract
Understanding the determinants of pro-environmental behaviour is key to address many environmental challenges. Economic theory and empirical evidence suggest that human behaviour is determined by peoples preferences over risk, time, and social consequences. As such, individual differences in these preferences should predict individual differences in pro-environmental behaviour. In a pre-registered study, we measure economic preferences in seven domains (risk taking, patience, present bias, altruism, positive reciprocity, negative reciprocity, and trust) and test whether these preferences predict pro-environmental behaviour in everyday life measured using the day reconstruction method. We find that only altruism is significantly associated with everyday pro-environmental behaviour. This suggests that people recognise everyday pro-environmental behaviours to be beneficial to others, but do not integrate the riskiness, inter-temporal structure, nor other social characteristics of pro-environmental behaviour into their decision-making. We also show in an exploratory analysis that different clusters of everyday pro-environmental behaviours are predicted by patience, positive reciprocity, and altruism, indicating that these considerations are relevant for some, but not other, pro-environmental behaviours.

Suggested Citation

  • Leonhard K. Lades & Kate Laffan & Till O. Weber, 2020. "Do economic preferences predict pro-environmental behaviour?," Working Papers 202003, Geary Institute, University College Dublin.
    • Handle: RePEc:ucd:wpaper:202003
    as

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    References listed on IDEAS

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    1. Fuhrmann-Riebel, Hanna & D'Exelle, Ben & Verschoor, Arjan, 2021. "The role of preferences for pro-environmental behaviour among urban middle class households in Peru," Ecological Economics, Elsevier, vol. 180(C).

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    Keywords

    Time preferences; risk preferences; social preferences; pro-environmental behaviour; day reconstruction method;
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