We studied the effect of an environmentally conscious nudge on the choice of car that our respondents make. Our primary data driven study was conducted after adequately reviewing the literature pertaining to the field of behavioral environmental economics. Our experiment shows that the nudge worked in most cases, except those which involve the question of prestige and status. We also found that in case if the preference for a car in particular segment is high with a small difference in carbon dioxide (CO2) emissions, then the respondents tend to choose the car of their liking. It is concluded that tools like nudges are in indeed helpful in reducing the emission levels from what we currently have.
Australian Government. (2008). Vehicle standard (Australian Design Rule 81/02 – Fuel Consumption Labelling for Light Vehicles) 2008. Department of Infrastructure and Regional Development.
2.
BresnahanB. W., DickieM., & GerkingS. (1997). Averting behavior and urban air pollution. Land Economics, 73, 340–357.
3.
CodagnoneC., VeltriG. A., BogliacinoF., VillanuevaF. L., GaskellG., IvchenkoA., OrtolevaP., & MuredduF. (2016). Labels as nudges? An experimental study of car eco-labels. Economia Politica, 33, 403–432. https://dx.doi.org/10.1007/s40888-016-0042-2
4.
European Commission. (n.d.). Car labelling—Climate action. https://ec.europa.eu/clima/policies/transport/vehicles/labelling_en
5.
FengY., FullertonD., & GanL. (2013). Vehicle choices, miles driven, and pollution policies. Journal of Regulatory Economics, 44(1), 4–29. https://dx.doi.org/10.1007/s11149-013-9221-z
6.
FullertonD., GanL., & HattoriM. (2014). A model to evaluate vehicle emission incentive policies in Japan. Environmental Economics and Policy Studies, 17(1), 79–108. https://dx.doi.org/10.1007/s10018-014-0089-7
7.
GroverC., BansalS., & Martinez-CruzA. L. (2021). Enhancing the informational nudge of energy labels: Evidence from a DCE in New Delhi. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3795176
8.
HuoH., ZhengB., WangM., ZhangQ., & HeK.-B. (2014). Vehicular air pollutant emissions in China: Evaluation of past control policies and future perspectives. Mitigation and Adaptation Strategies for Global Change, 20(5), 719–733. https://dx.doi.org/10.1007/s11027-014-9613-0
9.
ICCT. (2019). New study quantifies the global health impacts of vehicle exhaust. International Council on Clean Transportation. https://theicct.org/news/health-impacts-transport-sector-pr-20190227
10.
KahnemanD., & TverskyA. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263–291. https://dx.doi.org/10.2307/1914185
11.
KathuriaV. (2002). Vehicular pollution control in Delhi: Need for integrated approach. Economics & Political Weekly, 37, 1147–1155.
12.
LatakeT. P., PawarP., & RanveerA. C. (2015). The greenhouse effect and its impacts on environment. International Journal of Innovative Research and Creative Technology, 3, 333–337.
13.
MunteanM., GuizzardiD., SchaafE., CrippaM., SolazzoE., OlivierJ. G. J., & VignatiE. (2014). Fossil CO2 emissions of all world countries. JRC Science for Policy Report. https://dx.doi.org/10.2760/30158
14.
MyK. B., & OuvrardB. (2019). Nudge and tax in an environmental public goods experiment: Does environmental sensitivity matter? Resource and Energy Economics, 55(C), 24–48.
15.
ShahbandariS. (2016). Cars in UAE to have fuel efficiency rating next year. https://gulfnews.com/uae/transport/cars-in-uae-to-have-fuel-efficiency-rating-next-year-1.1678219
16.
SongH., & SchwarzN. (2008). If it’s hard to read, it’s hard to do: Processing fluency affects effort prediction and motivation. Psychological Science, 19(10), 986–988. https://doi.org/10.1111/j.1467-9280.2008.02189.x
17.
ThalerR. H. (2016). Behavioral economics: Past, present, and future. The American Economic Review, 106, 1577–1600.
18.
ThalerR. H., & SunsteinC. R. (2008). Nudge: Improving decisions about health, wealth, and happiness. Yale University Press.
19.
ThøgersenJ., HaugaardP., & OlesenA. (2010). Consumer responses to ecolabels. European Journal of Marketing, 44(11), 1787–1810. https://dx.doi.org/10.1108/03090561011079882
