Cluster V — Chapter 77

Green Nudging

1 Lusófona University, HEI‐Lab: Digital Human‐Environment Interaction Labs, Portugal 2 Research Centre for Justice and Governance, University of Minho, Portugal

Definition

Green nudges are subtle interventions aimed at promoting environmentally friendly behaviors and reducing harmful environmental impacts. Unlike restrictive measures, nudges preserve choices while gently influencing behavior through changes in choice architecture (see Choice Editing, Behavior Change). For example, setting double-sided printing as the default option is a green nudge, specifically a green default, which leverages people’s tendency to stick with the status quo. Green nudges are recognized as highly effective and are increasingly studied in behavioral economics, playing a significant role in policy discussions in many countries.

History

The rise of nudges in promoting environmental sustainability is tied to the development of behavioral economics in the 1970s, which integrates psychological insights into economic decision-making. Scholars like Herbert Simon, Daniel Kahneman, Amos Tversky, and Richard Thaler shaped this field. Simon’s “bounded rationality” challenged the traditional view of humans as fully rational actors, while Kahneman and Tversky’s Prospect Theory showed that people are more risk-averse when avoiding losses than when pursuing gains. By framing environmental decisions in terms of avoiding losses (e.g., the monetary and/or environmental costs), rather than in terms of potential gains, policymakers or environmental campaigns can leverage loss aversion to promote more sustainable behaviors. Thaler and Sunstein’s nudging framework further advanced strategies to influence behavior without limiting choice (see Freedom of Choice). This foundation supports green nudges, which encourage sustainable choices by leveraging human behavior without requiring strict policies.

Different perspectives

Critics argue that nudges can infringe on individuals’ privacy rights in two ways: (1) in relation to a lack of consent and (2) regarding independent choice-making.

First, by subtly influencing decisions without explicit consent, they raise concerns about paternalism, transparency, and fears of manipulation. For example, supermarket layouts are often designed to encourage impulse buying, by placing unhealthy snacks near the checkout. While this is a long-established practice, modern digital nudges, such as personalized product recommendations based on browsing data, take this a step further. These suggestions are tailored using sophisticated algorithms, triggering concerns about manipulation and the erosion of individual autonomy (see Information and Communication Technology). This blurs the line between gentle persuasion and manipulative practices.

Second, even when consent is sought and obtained, nudges may compromise an individual’s ability to make independent choices. For instance, someone might repeatedly encounter advertisements for energy-efficient appliances after searching for environmentally friendly products online (see Advertising, Energy Consumption Behavior). While this nudge toward sustainable purchasing appears beneficial, it can limit the consumer’s awareness of the broader market and subtly curate their decision-making environment.

While traditional advertising shapes behavior, modern behavioral targeting using extensive data collection (e.g., browsing history, social media usage) has heightened privacy concerns. Companies like Amazon and Facebook use algorithms to nudge users toward specific actions, often without them realizing the influence.

Conversely, proponents of green nudges argue that modest interventions can yield significant environmental benefits while preserving individual choice. Defaulting to enroll employees in green energy programs, reusable bags in grocery stores, or placing recycling bins in more visible and convenient locations, has proven to increase ecofriendly behaviors.

However, the effectiveness of green nudges is under scrutiny given limited knowledge about the interventions’ long-term effects, potential rebound effects, and moral licensing. For example, studies on reducing energy consumption through feedback systems – such as energy usage comparisons with neighbors – have shown positive short-term results, encouraging households to lower their consumption (see Energy Consumption Behavior). However, questions remain about whether these behaviors persist in the long term. There are also potential unintended consequences. For instance, research on moral self-licensing highlights how individuals who perform a positive act, such as recycling, may feel justified in neglecting other environmental responsibilities, like driving less or conserving water. This phenomenon complicates the sustainability impact of nudges, as observed in studies where participants engaged in green behaviors but simultaneously increased their carbon footprint elsewhere.

Debates also surround the acceptability of nudges and the accountability of those implementing them. The UK’s “Nudge Unit” has been praised for public health improvements but criticized for lacking transparency, prompting calls for clearer ethical guidelines and transparency in nudge use to protect individual autonomy.

Application

Green nudges have successfully promoted sustainable behaviors, especially when combined with policy interventions like monetary incentives. Informational nudges, such as ecolabels and light-switch reminders, encourage energy conservation and reduce food waste, while measures like Clear Bag Policies boost recycling rates. Subtle tactics, such as strategically placing recycling bins or using visual cues like “watching eyes” around recycling points can effectively guide pro-environmental behavior. Promoting vegan food options (see Protein Shift) and setting green energy defaults have also shown success.

Green nudges can complement traditional regulations by encouraging voluntary environmental compliance. Cities use nudges like real-time bus schedules and colored sidewalks to promote public transit and walking. However, critics argue that green nudges focus on “weak” sustainable consumption, addressing small changes while ignoring systemic issues behind environmental degradation. This reliance on nudges can lead to consumer scapegoatism, where individuals bear the burden rather than broader systemic reforms. To effectively combat climate change and other environmental challenges, more profound and equitable transformations are necessary. This includes addressing the structural inequities that exacerbate environmental harm and disproportionately affect marginalized communities (see Carbon Inequality, Climate Justice). Acknowledging the need for deeper systemic change alongside the use of green nudges ensures a more comprehensive approach to sustainability, one that balances individual actions with broader social, economic, and environmental reforms.

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Further Reading

Clot, S., Della Giusta, M., & Jewell, S. (2022). Once good, always good? Testing nudge’s spillovers on pro-environmental behavior. Environment and Behavior, 54(3), 655–669. https://doi.org/10.1177/00139165211060524.

Santos Silva, M. (2022). Nudging and other behaviourally based policies as enablers for environmental sustainability. Laws, 11(1), 9. https://doi.org/10.3390/laws11010009.

Schubert, C. (2017). Green nudges: Do they work? Are they ethical? Ecological Economics, 132, 329–342. https://doi.org/10.1016/j.ecolecon.2016.11.009.

Sunstein, C.R., & Reisch, L.A. (2014). Automatically green: Behavioral economics and environmental protection. Harvard Environmental Law Review, 38, 127. https://doi.org/10.2139/ssrn.2245657.

Thaler, R.H., & Sunstein, C.R. (2021). Nudge: Improving decisions about health, wealth, and happiness. Yale University Press.