Behavioral Incentives

At the micro level, 'better' behavior can reduce the need for LULUs such as highways, power plants and landfills. The behavior of individuals has not been a focus of IE to date, but it should become so because of the opportunities behavior changes present for environmental improvement (Fischoff and Small 1999). In contrast, as social scientists have penetrated the ranks of planning departments at universities (Goldstein 1997), planners have gained expertise in analyzing the appropriate uses of behavioral incentives and in designing appropriate policy interventions. Common applications include the following planning and public policy actions:

• privatization, deregulation and outsourcing of public services to bring these high-impact activities under market discipline (Stein 1990; Roth 1987);

• imposing user fees on trash disposal, water and sewer use to send economic signals upstream to households, rather than continuing to pay for these services from general tax revenues (Miranda et al. 1994);

• imposing impact fees on developers to cover the negative fiscal impacts (due to increased demand for public services) of new buildings (Brueckner 1996);

• adopting green procurement criteria when purchasing government supplies (Lyons

1999), and awarding economic development grants to green start-ups (NJCEGC

Behavioral incentives need not be economic, although that is the focus of the literature. Practical exhortations to recycle or buy green products often simply employ moral arguments.

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