Climate change and psychological adaptation: a behavioral environmental economics approach
2014 (English)Report (Other academic)
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, and 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.
Place, publisher, year, edition, pages
Umeå: Umeå universitet , 2014. , 19 p.
Umeå economic studies, ISSN 0348-1018 ; 885
Behavioral environmental economics, climate change, intertemporal externalities, adaptation, sensitization, taxation
Research subject Economics
IdentifiersURN: urn:nbn:se:umu:diva-92086OAI: oai:DiVA.org:umu-92086DiVA: diva2:739535