Climate change and psychological adaptation: A behavioral environmental economics approach

2 Behavioral Economics and Climate Change Policy

The policy recommendations of most economists are based on the rational actor model. The emphasis is on achieving efficient allocation by insuring that property rights are completely assigned and that market failures are corrected. This paper takes the position that so-called behavioral “anomalies” are central to human decision making and therefore, should be the starting point for effective ec...

Behavioral economics and climate change policy

The policy recommendations ofmost economists are based on the rational actormodel. The emphasis is on achieving efficient allocation by insuring that property rights are completely assigned and that market failures are corrected. This paper takes the position that so-called behavioral “anomalies” are central to human decision-making and, therefore, should be the starting point for effective eco...

The Economics of Adaptation to Climate Change

On Behavioral-Environmental Economics

Traditional environmental and resource economics uses rational choice theory to guide theevaluation of alternative policy options to correct market failure. Behavioral economics,however, has challenged this conventional mindset by showing how people frequently makechoices and state values that deviate from the presumption of rationality, i.e., behavioralfailures. This article ex...

climate change , economics of

Climate-change economics attends to the various threats posed by global climate change by offering theoretical and empirical insights relevant to the design of policies to reduce, avoid, or adapt to such change. This economic analysis has yielded new estimates of mitigation benefits, improved assessments of policy costs in the presence of various market distortions or imperfections, better tool...