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on Nudge and Boosting |
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Issue of 2024‒05‒06
two papers chosen by |
| By: | Steffen Altmann (University of Duiburg-Essen, University of Copenhagen); Andreas Grunewald (Frankfurt School of Finance and Management); Jonas Radbruch (Humboldt University Berlin) |
| Abstract: | Nudge-based policies are an important instrument for many policymakers. Based on a laboratory experiment featuring a dual-task paradigm, we examine the effects of two common types of nudge interventions—the simplification of complex decisions and the implementation of high-quality defaults. We find that these interventions do not only improve choices in the targeted domain, but also yield substantial positive indirect effects on non-targeted domains. The latter emerge through a reallocation of cognitive resources. Furthermore, the relative importance of direct and indirect effects varies systematically across the population. Evaluations that focus only on the targeted domain therefore significantly underestimate the interventions’ overall effectiveness and provide a biased assessment of their distributional consequences. |
| Keywords: | nudges; default options; administrative burden; limited attention; limited cognitive resources; behavioral economics; laboratory experiment; |
| Date: | 2024–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:503&r=nud |
| By: | Halkos, George; Gkargkavouzi, Anastasia |
| Abstract: | Behavioral environmental economics (BEE) is an emerging field that combines principles from behavioral and environmental economics along with psychological theory to study how human behavior influences environmental issues. It recognizes that human behavior often deviates from the rational actor model assumed in traditional environmental economics and seeks to understand the psychological, social, and emotional factors that influence people's decisions related to the environment. By gaining insights intothe human decision-making mechanism, BEE can better explain economically relevant environmental behavior and increase the predictive power of existing models. The fieldguidesthe design of effective and tailored-specific policy interventions that work with human behavioral tendencies, such as using defaults, framing, and social reinforcement to "nudge" people toward environmentally friendly choices. While behavioral insights can complement traditional policy tools, broader reforms are also needed to achieve sustainability. New trends derived from interdisciplinary research combining Environmental Psychology and Behavioral Economics are discussed. Overall, BEE offers a more realistic understanding of human decision-making and can help maximize the environmental benefits achieved through limited resources. |
| Keywords: | Behavioral environmental economics; Human decision-making; Environmentalism; Environmental policy; Sustainability. |
| JEL: | I30 Q00 Q51 Q59 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120752&r=nud |