Brown Bag Seminar: Social Preferences and Environmental Externalities

Speaker:  Pol Campos Mercade - Lund University
  Tuesday, November 19, 2024 at 12:00 PM Sala Vaona
Standard economic theory assumes that individuals ignore the externalities they create, such as emissions from burning fossil fuels and generating waste. In an incentivized study (N=3,718), we find that most people forgo substantial gains to avoid imposing negative externalities on others. Using administrative data on household waste, we show a clear link between such prosociality and waste behavior: prosociality predicts lower residual waste generation and higher waste sorting. Prosociality also predicts survey-reported pro-environmental behaviors such as lowering indoor temperature, limiting air travel, and consuming eco-friendly products. These findings suggest that the impact of environmental policies depend on the population's prosociality.

Programme Director
Andrea Mazzon

External reference
Publication date
October 21, 2024

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