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Nudging - changing consumer behavior through changes in the choice environment: Theoretical basis and policy implications
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2015 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Nudging is a way to change the choices of an individual without changing the economic incentives that surround the choice. This has made nudging attractive as a policy tool to reduce carbon emissions that result from consumer behavior. This paper evaluates nudging as a policy tool and compares it to taxes and subsidies as policies, those that change the economic incentives. This is done by using six criteria for evaluating policy tools presented by Field and Field; (1) efficiency, (2) cost-effectiveness, (3) fairness, (4) incentives for technological innovations, (5) enforceability and (6) agreement with moral precepts. The empirical foundation is based on experiments by different researchers that have tested the effect of nudges. The evaluation suggests that nudges seem to have an impact on consumer behavior, but that the scale of this impact is circumstantial. In relation to more traditional economic policies, nudges could serve as a complement that captures the human behavior which is difficult to target through other policies.

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URN: urn:nbn:se:uu:diva-243045OAI: oai:DiVA.org:uu-243045DiVA: diva2:785829
Available from: 2015-02-04 Created: 2015-02-04 Last updated: 2015-02-04Bibliographically approved

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