Individual and Household Environmental Behavior: What Does Economics Contribute to the Discussion?

November 2005
Citation:
35
ELR 10754
Issue
11
Author
Mark A. Cohen

Editors' Summary: This Article looks at the issue of individuals and their impact on the environment from an economist's perspective. Prof. Mark Cohen reviews the underlying economic theory of individual behavior as it relates to environmental issues and examines two categories of consumer environmental behavior: individual and household behavior in response to government activities, and consumer purchase behavior in response to product marketing and advertising campaigns. He finds that rational, utility-maximizing individuals might find it in their own interest to take actions that protect the environment--even if they do not personally receive the full benefits of that environmental improvement.

Mark Cohen is the Justin Potter Professor of American Competitive Enterprise and Director of the Vanderbilt Center for Environmental Management Studies, Owen Graduate School of Management, at Vanderbilt University. Professor Cohen has published numerous articles on such diverse topics as: the effect of Community Right-To-Know laws on firm behavior; why firms reduce toxic chemical emissions; cost-benefit analysis of oil spill regulation and enforcement; the relationship between environmental and financial performance; and government enforcement policy and judicial sentencing of individuals and firms convicted of environmental crimes.
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Individual and Household Environmental Behavior: What Does Economics Contribute to the Discussion?

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