Climate-friendly Default Rules

Cass R. Sunstein, Lucia A. Reisch*

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingBook chapterResearchpeer-review

Abstract

Careful attention to choice architecture promises to open up new possibilities for reducing greenhouse gas emissions—possibilities that go well beyond, and that may supplement or complement, the standard tools of economic incentives, mandates, and bans. How, for example, do consumers choose between climate-friendly products or services and alternatives that are potentially damaging to the climate but less expensive? The answer may well depend on the default rule. Indeed, climate-friendly default rules may well be a more effective tool for altering outcomes than large economic incentives. The underlying reasons include the power of suggestion; inertia and procrastination; and loss aversion. If well-chosen, climate-friendly defaults are likely to have large effects in reducing the economic and environmental harms associated with various products and activities. In deciding whether to establish climate-friendly defaults, choice architects (subject to legal constraints) should consider both consumer welfare and a wide range of other costs and benefits. Sometimes that assessment will argue strongly in favor of climate-friendly defaults, particularly when both economic and environmental considerations point in their direction. Notably, surveys in 17 countries worldwide show that majorities in many nations are in favor of climate-friendly defaults
Original languageEnglish
Title of host publicationSustainable Consumption and Production : Volume I. Challenges and Development
EditorsRanjula Bali Swain, Susanne Sweet
Number of pages24
Place of PublicationCham
PublisherPalgrave Macmillan
Publication date2021
Pages141-164
Chapter6
ISBN (Print)9783030563707
ISBN (Electronic)9783030563714
DOIs
Publication statusPublished - 2021

Keywords

  • Climate-friendly default rule
  • Choice architecture

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