WAEA Keynote Address Behavioral Environmental Economics: Money Pumps & Nudges
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Herein we explore how money pumps from rational choice theory and nudges from behavioral
economics work toward helping create better environmental policy. We examine the role
of money pumps in environmental policy, and whether policymakers can use nudges to
"supercharge" incentives. We summarize insight that has emerged from both camps in the areas
of conflict/cooperation and mechanism design.