The Behavioural Economics of Climate Change

• This chapter examines the economics of climate change from the perspective of behavioural economics: as market data simply reflect the aggregate of human behaviour of participants, understanding this behaviour and its normative significance is relevant to thinking about discounting, just as it is relevant to the design of climate change policy. The chapter considers the choice of discount rates and the ethics of discounting in a world where people are not time-consistent expected-utility maximisers, along with self control and social discount rates. It also addresses the issue of human cooperation in general, and implications for climate negotiations in particular. © Oxford Review of Economic Policy, 2009. All rights reserved.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business (hsv//eng)

NATURVETENSKAP  -- Geovetenskap och miljövetenskap -- Klimatforskning (hsv//swe)

NATURAL SCIENCES  -- Earth and Related Environmental Sciences -- Climate Research (hsv//eng)

Keyword

Behavioural economics

Climate change

Climate negotiations

Discount rates

Discounting

Economics

Ethics

Human behaviour

Human cooperation

Self control

Publication and Content Type

ref (subject category)

kap (subject category)