Nudging as an Environmental Policy Instrument

Economics

Speaker:Christina Gravert, University of Copenhagen
Website: https://www.christinagravert.com/
Date: Friday 2 November 2018
Time: 14.00
Location: Matrix Lecture Theatre, Building One

Further details

Abstract: We discuss the use of green nudges as an environmental policy instrument, i.e., nudges that are used with the purpose to reduce environmental externalities. We analyze both cognitive and moral green nudges. The review of existing empirical studies reveals that green nudges can have a sizeable impact on behavior and the environment, but that the effects are context dependent. In the policy discussion, drawing on both the empirical overview and basic welfare-economic models, it is emphasized that while green nudges seem to have a large potential, they offer no panacea for solving environmental problems. They should instead be seen as a policy instrument among others in the regulator’s toolbox. In particular, we discuss the potential role of nudging in the case that environmental externalities can be dealt with using optimal Pigovian taxes or if not. The role for nudging is larger where such taxes are not available or feasible.