Biases and Nudges in the Circular Economy: A Review
Luca Congiu (),
Enrico Botta () and
Mariangela Zoli
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Luca Congiu: DEF, University of Rome "Tor Vergata", http://www.ceistorvergata.it
Enrico Botta: OECD, Green Growth and Global Relations Division
No 583, CEIS Research Paper from Tor Vergata University, CEIS
Abstract:
The circular economy transition requires consumers to make further efforts in their waste disposal behaviors, by increasing waste sorting, repairing and reusing products, and reducing the amount of waste produced. The literature has identified several barriers to consumers’ adoption of these practices. In this paper, we posit that such barriers can be ultimately linked to well-known decisional biases and proceed to offer a review. In doing so, we categorize biases into “cognitive”, referring to deviations from normatively correct behavior, and “motivational”, encompassing behavior driven by desirability concerns. We also survey the existing behavioral policies addressing the identified biases, focusing on “nudges”, that is, interventions leveraging biases to improve welfare. In our review, we call attention to the importance of recognizing the relevant bias behind specific behaviors to identify the best interventions to implement. By offering a conceptual link between biases and circular economy practices, we also lay the groundwork for future experimental investigation.
Keywords: cognitive bias; motivational bias; nudge; circular economy; second-hand; review (search for similar items in EconPapers)
JEL-codes: D01 D04 D91 M31 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2024-10-03, Revised 2024-10-03
New Economics Papers: this item is included in nep-env, nep-exp, nep-nud and nep-reg
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