Environmental and Resource Economics

, Volume 58, Issue 3, pp 335–351

Behavioral Environmental Economics: Promises and Challenges


DOI: 10.1007/s10640-014-9783-y

Cite this article as:
Croson, R. & Treich, N. Environ Resource Econ (2014) 58: 335. doi:10.1007/s10640-014-9783-y


Environmental issues provide a rich ground for identifying the existence and consequences of human limitations. In this paper, we present a growing literature lying at the interface between behavioral and environmental economics. This literature identifies alternative solutions to traditional economic instruments in environmental domains that often work imperfectly. But it also faces a set of challenges, including the difficulty of computing welfare effects, and the identification of a robust environmental policy based on context-dependent (socio-) psychological effects. We illustrate our critical discussion with two behavioral schemes that have been widely implemented: “green nudges” and “corporate environmental responsibility.”


Behavioral economics Environmental policy Nudge   Corporate social responsibility Environmental psychology. 

Copyright information

© Springer Science+Business Media Dordrecht 2014

Authors and Affiliations

  1. 1.University of Texas at ArlingtonArlingtonUSA
  2. 2.Toulouse School of Economics (LERNA, INRA)ToulouseFrance

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