Economics Environmental Externalities Questions
Behavioral economics in environmental decision-making refers to the application of psychological and behavioral insights to understand and influence individual and collective choices related to the environment. It recognizes that individuals do not always make rational decisions and are influenced by cognitive biases, social norms, and emotions. By understanding these behavioral factors, policymakers and researchers can design interventions and policies that nudge individuals towards more environmentally friendly choices. This approach takes into account the real-world behavior of individuals and aims to align their decision-making with sustainable and environmentally beneficial outcomes.