Behavioural insights for green growth

Environmental policies need to help individuals consider the environmental consequences of their activities. Insights from behavioural sciences and economics can help policy makers better understand the mechanisms driving individual decision-making and design policies that facilitate behavioural change.

OECD analysis based on survey of more than 40 000 respondents in twenty countries that account for 72% of global CO2 emissions shows that support for climate policies hinges on three key factors: the perceived effectiveness of the policies in reducing emissions, their perceived impacts on lower-income households, and expected personal gains and losses. The research also shows that several socioeconomic and lifestyle factors, including education and political leanings, are correlated with both policy views and beliefs about climate policies. Support for carbon pricing strongly depends on the revenue use. It can receive majority support if the revenues are used to invest in green technologies and recycled to vulnerable households.

The OECD is also completing the third round of Household Surveys on Environmental Policies and Individual Behaviour Change (EPIC). The EPIC Survey benchmarks environmental attitudes, behaviours and support for policies related to energy use, transport, food consumption and circular economy practices across countries. Preliminary findings indicate that convenience and affordability remain key household priorities in all domains. Future work will assess the extent to which socio-economic, geographic and policy-related factors drive environmental behaviours and analyse hypothetical policy scenarios using four discrete choice experiments included in the survey.

Insights from behavioural sciences and economics have been used to strengthen policy impact, in interaction with regulatory and fiscal instruments, in country-specific OECD projects. The OECD worked with Israel to understand driving behaviours, anticipating responses to congestion charges design and foster more sustainable transport. Behaviourally informed instruments were considered in conjunction with investment and social policies to strengthen housing affordability in Latvia. The OECD BI team supported Italy in identifying opportunities to leverage behavioural economics to support a green transition within the tourism sector. Further OECD research in this area includes an ongoing project on the role of behavioural insights in driving the circular economy transition in Italy.

As part of the Public Governance directorate’s “Governing Green” initiative, the OECD Expert Group on Behavioural Insights is currently leading a working group of experts working in governments across 47 countries that focuses on three key areas; 1) public awareness and support of green reforms, (2) improving decision-making of policymakers to support green transition, and (3) tackling misinformation related to climate change.

Key Publications and websites

• Fighting climate change: International attitudes toward climate policies, OECD Economics Department Working Papers (2022)

• Policy Actions for Affordable Housing in Latvia (2020)

• Assessing Incentives to Reduce Traffic Congestion in Israel (2019)

• Leveraging the Smart Grid: The Effect of Real-Time Information on Consumer Decisions (2018)

• Tackling Environmental Problems with the Help of Behavioural Insights (2017)

• The Rebound Effect in Road Transport: A Meta-Analysis of Empirical Studies (2016)

• www.oecd.org/environment/consumption-innovation/households.htm

• www.oecd.org/environment/tools-evaluation/behavioural-experimentaleconomics-for-env-policy.htm

Contact for more information

Filippo Cavassini

Economics Directorate

E-mail: Filippo.Cavassini@oecd.org

Chiara Varazzani

Public Governance Directorate

E-mail: Chiara.Varazzan@oecd.org