WAEA Keynote Address: Behavioral Environmental Economics: Money Pumps & Nudges

Abstract

Herein we explore how money pumps from rational choice theory and nudges from behavioral economics work toward helping create better environmental policy. We examine the role of money pumps in environmental policy, and whether policymakers can use nudges to "supercharge" incentives. We summarize insight that has emerged from both camps in the areas of conflict/cooperation and mechanism design.

Keywords

• behavioral economics
• conflict
• cooperation
• incentives
• mechanism design
• money pumps
• nudges