Climate Change and Psychological Adaptation: A Behavioral Environmental Economics Approach

Arbeitspapier

Economic models of climate policy (or policies to combat other environmental problems) typically neglect psychological adaptation to changing life circumstances. People may adapt or become more sensitive, to different degrees, to a deteriorated environment. The present paper addresses these issues in a simple model of tax policy to combat climate change and elaborates on the consequences for optimal climate policies and argues from a normative point of view that psychological adaptation needs to be taken into account by a pure welfarist government, which aims at internalizing an intertemporal externality.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 4795

Classification and Topics

• Classification: Wirtschaft ; Allocative Efficiency; Cost-Benefit Analysis ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡ ; Taxation and Subsidies: Efficiency; Optimal Taxation
• Subject: behavioral environmental economics ; climate change ; intertemporal externalities ; adaptation ; sensitization ; taxation

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Aronsson, Thomas ; Schöb, Ronnie
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/102238
• Last update: 10.03.2025, 11:43 AM CET