Climate Change and Psychological Adaptation: A Behavioral Environmental Economics Approach

Thomas Aronsson () and Ronnie Schöb ()
Additional contact information
Thomas Aronsson: Department of Economics, Umeå School of Business and Economics, Postal: Umeå University, S 901 87 Umeå, Sweden
Ronnie Schöb: School of Business and Economics, Postal: Freie Universität Berlin, D–14195 Berlin, Germany
Authors registered in the RePEc Author Service: Ronnie Schoeb

No 885, Umeå Economic Studies from Umeå University, Department of Economics

Abstract: 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.

Keywords: Behavioral environmental economics; climate change; intertemporal externalities; adaptation; sensitization; taxation (search for similar items in EconPapers)
JEL-codes: D03 D61 D91 H21 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2014-05-06
New Economics Papers: this item is included in nep-cbe, nep-ene and nep-env
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Related works:
Journal Article: Climate change and psychological adaptation: A behavioral environmental economics approach (2018)
Working Paper: Climate Change and Psychological Adaptation: A Behavioral Environmental Economics Approach (2014)
Working Paper: Climate Change and Psychological Adaptation: A Behavioral Environmental Economics Approach (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:umnees:0885

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