Nobel Prize Winner Professor Richard Thaler, Cambridge University's Lucia A. Reisch, and BIT CEO and founder Professor David Halpern discuss achieving behavior change for net zero carbon emissions by 2050, addressing the role of corporations and government, the effectiveness of green energy defaults, catalyzing behavior change through technology, and the potential of green pensions and renewable energy infrastructure.
The challenge of climate change mitigation requires addressing free riding and public goods dilemmas at both individual and national levels.
Present bias hampers climate change action by prioritizing immediate gratification over long-term benefits, necessitating the valuation of future benefits on par with present benefits.
Effective climate change communication should utilize sensory stimuli, strike a balance between fear and hope, and emphasize co-benefits like health effects and motive alliances for sustainable behaviors.
Deep dives
The Challenge of Cooperation and Collective Action
The podcast discusses the challenge of getting individuals and nations to cooperate in taking collective action to mitigate climate change. The problem of free riding and public goods dilemmas are highlighted, as individuals and countries may not contribute to the public good if they get less out of it than they put in. This challenge is exacerbated by the lack of cooperation at the governmental level and the difficulty of making significant changes at the level of businesses and organizations.
Present Bias and the Need for Long-Term Thinking
The podcast explores the concept of present bias and its impact on climate change mitigation. Present bias refers to the tendency to prioritize immediate gratification over long-term benefits. In the context of climate change, present bias hampers action by making it difficult to value benefits for future generations. The need for valuing future benefits on par with present benefits is emphasized, along with the role of shocks and disasters in creating a sense of urgency and overcoming present bias.
Increasing Awareness and Shifting Behavioral Factors
The podcast discusses the evolving awareness of climate change and how extreme weather events and media coverage are shifting behavioral factors. It highlights the need for sensory or experiential stimuli to prompt action and the importance of finding a balance between fear and hope in climate change communication. The role of health effects, community building, and motive alliances as co-benefits for sustainable behaviors is emphasized.
Addressing Behavior Change and Setting Priorities
The podcast explores the paradox of behavior change and climate change, where there is public appetite for action, yet policymakers and behavioral scientists may be skeptical about the effectiveness of behavior change approaches. It suggests setting priorities that focus on small, impactful changes in technology adoption and getting the public's buy-in through easy and concrete actions. Correcting misperceptions about the most effective actions and directing attention to impactful changes are also highlighted.
The Role of Defaults, Technology, and Price Incentives
The podcast discusses the importance of defaults in driving sustainable behaviors and the need for technology to make sustainable choices the easy choices. It stresses the significance of setting prices on carbon as a means to address emissions at a large scale, noting the success of Sweden's carbon tax. The role of market mechanisms, such as cap and trade systems and the importance of aligning incentives for businesses and organizations, is also emphasized.
According to the Paris Agreement’s: Sixth Carbon Budget, in order to reach net zero carbon emissions by 2050, a 63% reduction in future emissions is required over the next decade or so. This is no mean feat! Such reductions will require substantial changes to our behaviour including the adoption of new technologies such as eco-friendly heating systems, and the reduction of our reliance on high carbon-footprint transportation systems such as flights and diesel cars.
Our guests discuss how this behaviour change can be achieved; the psychological biases and barriers that stand in our way; and the role that corporations and government must play to make climate-friendly behaviours tenable.
