Climate Change and Psychological Adaptation: A Behavioral Environmental Economics Approach

Ronnie Schöb and Thomas Aronsson
Authors registered in the RePEc Author Service: Ronnie Schoeb

VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy from Verein für Socialpolitik / German Economic Association

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. Furthermore, it 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.

JEL-codes: D03 D61 H21 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-ene and nep-env
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https://www.econstor.eu/bitstream/10419/100287/1/VfS_2014_pid_815.pdf (application/pdf)

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:zbw:vfsc14:100287

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