1887

OECD Environment Working Papers

This series is designed to make available to a wider readership selected studies on environmental issues prepared for use within the OECD. Authorship is usually collective, but principal authors are named. The papers are generally available only in their original language English or French with a summary in the other if available.

English

Behavioural Economics and Environmental Incentives

This review aims to improve our understanding of the implications of the insights from behavioural economics for environmental policy design. The review focuses on the question of incentive design in two broad areas — risk, conflict and cooperation; and mechanism design. A number of lessons for policy design emerge from the literature and are highlighted in the paper.

English

Keywords: mechanism design, behavioural economics, institutions, environmental policy
JEL: Q28: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Renewable Resources and Conservation / Renewable Resources and Conservation: Government Policy; D70: Microeconomics / Analysis of Collective Decision-Making / Analysis of Collective Decision-Making: General; H30: Public Economics / Fiscal Policies and Behavior of Economic Agents / Fiscal Policies and Behavior of Economic Agents: General; H41: Public Economics / Publicly Provided Goods / Public Goods; Q58: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environmental Economics: Government Policy
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