The economics of climate change with endogenous preferences - Grantham Research Institute on climate change and the environment<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/the-economics-of-climate-change-with-endogenous-preferences\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The economics of climate change with endogenous preferences - Grantham Research Institute on climate change and the environment\" \/>\n<meta property=\"og:description\" content=\"This article examines the impact of climate policy-induced changes in consumers\u2019 preferences.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/the-economics-of-climate-change-with-endogenous-preferences\/\" \/>\n<meta property=\"og:site_name\" content=\"Grantham Research Institute on climate change and the environment\" \/>\n<meta property=\"article:modified_time\" content=\"2024-08-19T13:39:55+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/publication\\\/the-economics-of-climate-change-with-endogenous-preferences\\\/\",\"url\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/publication\\\/the-economics-of-climate-change-with-endogenous-preferences\\\/\",\"name\":\"The economics of climate change with endogenous preferences - 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{"id":61181,"date":"2022-07-01T16:15:00","date_gmt":"2022-07-01T15:15:00","guid":{"rendered":"https:\/\/www.lse.ac.uk\/granthaminstitute\/?post_type=publication&p=61181"},"modified":"2024-08-19T14:39:55","modified_gmt":"2024-08-19T13:39:55","slug":"the-economics-of-climate-change-with-endogenous-preferences","status":"publish","type":"publication","link":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/the-economics-of-climate-change-with-endogenous-preferences\/","title":{"rendered":"The economics of climate change with endogenous preferences"},"content":{"rendered":"\n

Avoiding unmanageable climate change implies that global greenhouse gas emissions must be reduced rapidly. Carbon prices and technological development are essential to deliver such reductions. Changes in preferences, however, are rarely considered, even though other major socioeconomic transitions – such as those from reducing smoking and drink-driving – have succeeded partly because preferences have changed. This article examines the impact of climate policy-induced changes in consumers’ preferences. We show that low-carbon policies could be better designed if it is recognised that preferences can be endogenous to such policies. For instance, carbon taxes must be adjusted, if they crowd-in or -out social preferences, to achieve a given target. Further, when the urban built environment changes mobility preferences, the value of low-carbon infrastructure investments can be underestimated if such effects are ignored. Third, policy-induced changes in preferences for active travel and plant-based diets could increase the net benefits of the transition to zero emissions.<\/p>\n\n\n\n

Linus Mattauch, Cameron Hepburn, Fiona Spuler, Nicholas Stern, The economics of climate change with endogenous preferences, Resource and Energy Economics<\/em>, Volume 69, 2022, 101312, ISSN 0928-7655, https:\/\/doi.org\/10.1016\/j.reseneeco.2022.101312.<\/strong><\/p>\n\n","protected":false},"excerpt":{"rendered":"\n

This article examines the impact of climate policy-induced changes in consumers’ preferences. <\/p>\n\n","protected":false},"author":12,"featured_media":0,"template":"","tags":[857,713,2358,872],"publication-type":[436],"topic_area":[4694,4698],"class_list":["post-61181","publication","type-publication","status-publish","hentry","tag-carbon-pricing","tag-consumer-behaviour","tag-endogenous-preferences","tag-preferences","publication-type-research-articles","topic_area-policy-evaluation","topic_area-behavioural-responses"],"acf":{"exclude_from_sync":{"ref_value":"field_560538b0e7350","value":"0","type":false,"post_type":""},"show_translations_widget":{"ref_value":"field_6203d588c41e8","value":"0","type":false,"post_type":""},"downloads":{"ref_value":"field_52f16cc1a80f2","value":false,"type":"repeater","post_type":""},"rss_newsletter":{"ref_value":"field_54f5c2c1544d8","value":"","type":false,"post_type":""},"profile_link":{"ref_value":"field_52f164b5189e9","value":["linus-mattauch","cameron-hepburn","fiona-spuler","nicholas-stern"],"type":"relationship","post_type":"profile"},"article_link":{"ref_value":"field_52eee3c7f0586","value":"https:\/\/www.sciencedirect.com\/science\/article\/pii\/S092876552200029X?via%3Dihub","type":false,"post_type":""},"article_link_title":{"ref_value":"field_5322399d89d42","value":"external link to paper","type":false,"post_type":""},"spotlight":{"ref_value":"field_52f80896506d3","value":"","type":false,"post_type":""}},"yoast_head":"\nThe economics of climate change with endogenous preferences - 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