Download This PaperClimate Choice Architecture
Boston College Law Review, Vol. 64, Iss. 1, 2023, pp. 1-53
Texas A&M University School of Law Legal Studies Research Paper No. 22-47
55 Pages Posted: 30 Apr 2022 Last revised: 30 May 2023
Date Written: April 28, 2022
Abstract
Personal choices drive global warming nearly as much as institutional decisions. Yet, policymakers overwhelmingly target large-scale industrial facilities for reductions in carbon emissions, with individual and household emissions a mere afterthought. Recent advances in behavioral economics, cognitive psychology, and related fields have produced a veritable behavior change revolution. Subtle changes to the choice environment, or nudges, have improved stakeholder decision making in a wide range of contexts, from healthier food choices to better retirement planning. But the vast potential of choice architecture remains largely untapped for purposes of climate policy and action. This Article makes the case for nudges to become a cornerstone of public and private climate governance, targeting both institutional and individual decision-making.
Nudges are nimbler than most conventional regulations and adapt more readily to changing climate circumstances. Climate choice architects can build on a proven track record of successful behavioral interventions in water conservation, waste management, and other domains of environmental law and policy. As carbon pricing policies gather momentum, choice architecture can help address behavioral challenges as well as pervasive issues related to leakage, agency, and coverage. Bipartisan approval of other prominent nudge campaigns, meanwhile, illustrates the potential of choice architecture to help defuse the increasingly polarized politics of climate change. Importantly, nudges not only improve the efficacy, efficiency, and equity of public policy but also amplify the impact of private governance action on climate change.
For all their well-documented success, nudges have produced their share of discontents. Opponents especially criticize the impact of choice architectural interventions on stakeholder autonomy. Even the most outspoken critics, however, approve of nudges that mitigate information asymmetries, and remedy market failures like the disastrous externalities imposed by greenhouse gas emissions. As catalysts for more informed choices, climate nudges can alleviate growing concerns over climate justice by transforming previously passive stakeholders into active decision-makers in the transition to a low-carbon economy.
Keywords: climate, climate change, global warming, carbon, default rules, green default, climate justice, climate equity, nudge, choice architecture, behavioral economics, decision making, cognitive psychology
JEL Classification: K10, K20, K22, K23, K32, Q01, Q50, G10, G18, G24
Suggested Citation: Suggested Citation
Felix Mormann (Contact Author)
Texas A&M University School of Law ( email )
1515 Commerce St.
Fort Worth, TX Tarrant County 76102
United States
Stanford Law School ( email )
Steyer-Taylor Center for Energy Policy and Finance
559 Nathan Abbott Way
Stanford, CA 94305-8610
United States