Overview
Behavioral economics plays a crucial role in understanding how people make decisions regarding climate action. By examining psychological factors, we can identify why individuals may fail to act on climate change despite awareness. Concepts like nudges, loss aversion, and social norms provide insigh...
Key Terms
Example: Placing recycling bins in visible locations encourages recycling.
Example: People are more upset about losing $10 than they are happy about gaining $10.
Example: If most people in a community recycle, others are likely to do the same.
Example: Tax credits for solar panel installation encourage renewable energy use.
Example: Overconfidence can lead to underestimating climate risks.
Example: Describing a product as '90% fat-free' rather than '10% fat' influences choices.