Year: 2014
Type: report
Abstract: Utilizing theory and empirical insights from psychology and behavioral economics, this paper examines individuals' cognitive and motivational barriers to adopting climate change adaptation and mitigation measures that increase consumer welfare.We explore various strategies that take into account the simplified decision-making processes used by individuals and resulting biases.We make these points by working through two examples: (1) investments in energy efficiency products and new technology and (2) adaptation measures to reduce property damage from future floods and hurricanes.In both cases there is a reluctance to undertake these measures due to high and certain upfront costs, delayed and probabilistic benefits and behavioral biases related to this asymmetry.The use of choice architecture through framing and the use of default options coupled with short-term incentives and long-term contracts can encourage greater investment in these measures.
DOI: 10.3386/w19776
Authors: Howard Kunreuther, Elke Weber
Institutions: University of Pennsylvania, Columbia University
Language: English
Subfield: General Decision Sciences
Field: Decision Sciences
Domain: Social Sciences
SDG: Climate action
Open Access status: green
Awards: DMUU: Individual and Group Decision Making Under Climate Uncertainty, Individual Decisions in the Face of Natural Hazards: An Analysis of Decades of Flood Insurance Purchases, Claims Filed and Risk Management under the National Flood Insurance Progra, Individual Decisions in the Face of Natural Hazards: An Analysis of Flood Insurance Purchases, Claims Filed and Reform Options for the National Flood Insurance Program, DMUU: Center on Climate Decision Making, G5088594262
OpenAlex ID: W3124122280