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It opens up the \"black box\" of the brain, much as organizational economics adds detail to the theory of the firm. Neuroscientists use many tools— including brain imaging, behavior of patients with localized brain lesions, animal behavior, and recording single neuron activity. The key insight for economics is that the brain is composed of multiple systems which interact. Controlled systems (\"executive function\") interrupt automatic ones. Emotions and cognition both guide decisions. Just as prices and allocations emerge from the interaction of two processes—supply and demand— individual decisions can be modeled as the result of two (or more) processes interacting. Indeed, \"dual-process\" models of this sort are better rooted in neuroscientific fact, and more empirically accurate, than single-process models (such as utility-maximization). We discuss how brain evidence complicates standard assumptions about basic preference, to include homeostasis and other kinds of state-dependence. We also discuss applications to intertemporal choice, risk and decision making, and game theory. Intertemporal choice appears to be domain-specific and heavily influenced by emotion. The simplified ß-d of quasi-hyperbolic discounting is supported by activation in distinct regions of limbic and cortical systems. In risky decision, imaging data tentatively support the idea that gains and losses are coded separately, and that ambiguity is distinct from risk, because it activates fear and discomfort regions. (Ironically, lesion patients who do not receive fear signals in prefrontal cortex are \"rationally\" neutral toward ambiguity.) Game theory studies show the effect of brain regions implicated in \"theory of mind\", correlates of strategic skill, and effects of hormones and other biological variables. 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It discusses definitions of environmentally significant behavior; classifies the behaviors and their causes; assesses theories of environmentalism, focusingespecially on value-belief-norm theory; evaluates the relationship between environmental concern and behavior; and summarizes evidence on the factors that determine environmentally significant behaviors and that can effectively alter them. The article concludes by presenting some major propositions supported by available research and some principles for guiding future research and informing the design of behavioral programs for environmental protection.", "publicationTitle": "Journal of Social Issues", "publisher": "", "place": "", "date": "January 1, 2000", "volume": "56", "issue": "3", "section": "", "partNumber": "", "partTitle": "", "pages": "407-424", "series": "", "seriesTitle": "", "seriesText": "", "journalAbbreviation": "", "DOI": "10.1111/0022-4537.00175", "citationKey": "", "url": "http://onlinelibrary.wiley.com/doi/10.1111/0022-4537.00175/abstract", "accessDate": "2016-07-20T07:59:20Z", "PMID": "", "PMCID": "", "ISSN": "1540-4560", "archive": "", "archiveLocation": "", "shortTitle": "New Environmental Theories", "language": "en", "libraryCatalog": "Wiley Online Library", "callNumber": "", "rights": "2000 The Society for the Psychological Study of Social Issues", "extra": "", "tags": [], "collections": [], "relations": {}, "dateAdded": "2016-07-20T07:59:20Z", "dateModified": "2016-07-20T07:59:20Z" } }, { "key": "76EN5ISJ", "version": 10, "library": { "type": "group", "id": 492993, "name": "Behavioural Economics and Carbon-Energy Policy", "links": { "alternate": { "href": "https://www.zotero.org/groups/behavioural_economics_and_carbon-energy_policy", "type": "text/html" } } }, "links": { "self": { "href": "https://api.zotero.org/groups/492993/items/76EN5ISJ", "type": "application/json" }, "alternate": { "href": "https://www.zotero.org/groups/behavioural_economics_and_carbon-energy_policy/items/76EN5ISJ", "type": "text/html" } }, "meta": { "createdByUser": { "id": 127093, "username": "jsonnenschein", "name": "Jonas Sonnenschein", "links": { "alternate": { "href": "https://www.zotero.org/jsonnenschein", "type": "text/html" } } }, "creatorSummary": "Sunstein and Reisch", "parsedDate": "2014", "numChildren": 0 }, "data": { "key": "76EN5ISJ", "version": 10, "itemType": "journalArticle", "title": "Automatically green: Behavioral economics and environmental protection", "creators": [ { "creatorType": "author", "firstName": "Cass R.", "lastName": "Sunstein" }, { "creatorType": "author", "firstName": "Lucia A.", "lastName": "Reisch" } ], "abstractNote": "", "publicationTitle": "Harv. 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"title": "Household energy use: Applying behavioural economics to understand consumer decision-making and behaviour", "creators": [ { "creatorType": "author", "firstName": "Elisha R.", "lastName": "Frederiks" }, { "creatorType": "author", "firstName": "Karen", "lastName": "Stenner" }, { "creatorType": "author", "firstName": "Elizabeth V.", "lastName": "Hobman" } ], "abstractNote": "Household energy conservation has emerged as a major challenge and opportunity for researchers, practitioners and policymakers. Consumers also seem to be gaining greater awareness of the value and need for sustainable energy practices, particularly amid growing public concerns over greenhouse gas emissions and climate change. Yet even with adequate knowledge of how to save energy and a professed desire to do so, many consumers still fail to take noticeable steps towards energy efficiency and conservation. There is often a sizeable discrepancy between peoples’ self-reported knowledge, values, attitudes and intentions, and their observable behaviour—examples include the well-known ‘knowledge-action gap’ and ‘value-action gap’. But neither is household energy consumption driven primarily by financial incentives and the rational pursuit of material interests. In fact, people sometimes respond in unexpected and undesirable ways to rewards and sanctions intended to shift consumers’ cost–benefit calculus in favour of sustainable behaviours. Why is this so? Why is household energy consumption and conservation difficult to predict from either core values or material interests? By drawing on critical insights from behavioural economics and psychology, we illuminate the key cognitive biases and motivational factors that may explain why energy-related behaviour so often fails to align with either the personal values or material interests of consumers. 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