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544. Transforming Environmental Compliance Using Behavioral Economics

Oct 28, 2025

Karina Montez, an economist at Peru's National Environmental Enforcement Agency, and Mario Drago, a lawyer specializing in regulatory policy, discuss their innovative approach to enhancing environmental compliance through behavioral economics. They reveal how simple behavioral tweaks led to a 600% increase in reporting compliance among mining companies. Key insights include the power of framing, effective communication, and transforming the compliance culture without new regulations. Their work exemplifies how understanding human behavior can drive meaningful environmental change.

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ANECDOTE

How OEFA Found Behavioral Science

Karina describes how OEFA discovered irrational compliance patterns in 2016 and started self-educating on behavioral science.
They recruited trainers and connected with Mario, launching the initial behavioral reform efforts.

ANECDOTE

Recruiting And Training The First Team

Karina recounts running a 20-question test to recruit 30 motivated OEFA staff from hundreds of applicants.
The selected group then received advanced behavioral training to run experiments internally.

ADVICE

Start With Personas And Controls

Identify who you're trying to change and build experimental and control groups before designing nudges.
Map the persona and causes of behavior first, then test tailored interventions over months.

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In this episode of The Brainy Business podcast, Melina Palmer welcomes Karina Montez and Mario Drago from BE UEFA in Peru, who are making waves in environmental compliance through innovative behavioral economics strategies. This conversation revisits their pioneering work in nudging mining companies towards better environmental practices without the need for new regulations, showcasing the power of simple behavioral tweaks.

Karina and Mario share their journey of how they identified compliance challenges within Peru's environmental enforcement framework and transformed their approach using behavioral science tools like framing, social norms, and reminders. They discuss the remarkable results of their initiatives, including a staggering 600% increase in reporting compliance, and how these insights can inspire others in various sectors to implement similar strategies.

Throughout the episode, listeners will gain valuable perspectives on the importance of understanding the audience, simplifying communication, and fostering a culture of compliance through thoughtful nudges. Karina and Mario's work serves as a powerful reminder that impactful change can stem from understanding human behavior, rather than relying solely on regulations.

In this episode:

Discover how behavioral economics can drive environmental compliance without new laws.
Learn about the importance of effective communication in promoting compliance.
Explore the process of identifying and addressing compliance challenges through behavioral insights.
Understand the role of framing and social norms in influencing decision-making.
Gain inspiration for applying behavioral science in your own work, regardless of the industry.

Get important links, top recommended books and episodes, and a full transcript at thebrainybusiness.com/544.

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