A Behavioral Economics Analysis of Environmental Policies in China and USA
- 10.2991/aebmr.k.201211.038How to use a DOI?
- General environmental economics, energy government policy, sustainable development, general fiscal policies and behaviour of economic agents, microeconomic behavior: underlying principles
The purpose of this article is to compare the different environmental policies between China and USA, namely the policies aimed at tackling global warming. China produces about 23 percent of the world’s carbon dioxide, compared to 21 percent from the United States with China being the world’s largest emitter of carbon dioxide since about 2006. The current US administration has made it clear that tackling climate change is not high on the agenda of US policy. On the other hand, China has started to conduct central environmental inspections, carried out guidelines to control air, water and soil pollution, published its own plans to realize the 2030 Agenda for Sustainable Development. In this article, we will use a variety tools from behavioural economics to draw direct comparisons between USA and China in terms of the vastly different attitudes towards environmental policy. Specifically, we will use various techniques and models from behavioural economics, namely, reference dependence, hyperbolic discounting, loss aversion, status quo bias and other-regarding preferences to explain why environmental policy are so different between the two economies, despite the need for resolving environmental issues being integral to long-term sustainability.
- © 2020, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Muyang Chen AU - Gavin Kader PY - 2020 DA - 2020/12/14 TI - A Behavioral Economics Analysis of Environmental Policies in China and USA BT - Proceedings of the Fifth International Conference on Economic and Business Management (FEBM 2020) PB - Atlantis Press SP - 223 EP - 230 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.201211.038 DO - 10.2991/aebmr.k.201211.038 ID - Chen2020 ER -