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Climate change and psychological adaptation: A behavioral environmental economics approach
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
2018 (English)In: Journal of Behavioral and Experimental Economics, ISSN 2214-8043, E-ISSN 2214-8051, Vol. 74, p. 79-84Article in journal (Refereed) Published
Abstract [en]

Economic models of climate policy (or policies to combat other environmental problems) typically neglect psychological adaptation to changing life circumstances. People may adapt, to different degrees, to a deteriorated environment. The present paper addresses these issues in a model of optimal tax policy to combat climate change and discusses the consequences for optimal climate policies. Furthermore, from a normative-methodological point of view, we argue that psychological adaptation needs to be taken into account even by a pure welfarist policy maker, who aims at internalizing an intertemporal externality.

Place, publisher, year, edition, pages
Elsevier, 2018. Vol. 74, p. 79-84
Keywords [en]
Behavioral environmental economics, Climate change, Intertemporal externalities, Adaptation, Taxation
National Category
Economics
Identifiers
URN: urn:nbn:se:umu:diva-148716DOI: 10.1016/j.socec.2018.03.005ISI: 000432773100009Scopus ID: 2-s2.0-85044940129OAI: oai:DiVA.org:umu-148716DiVA, id: diva2:1223433
Funder
Swedish Research Council, 421-2010-1420Available from: 2018-06-25 Created: 2018-06-25 Last updated: 2018-06-25Bibliographically approved

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Aronsson, Thomas

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