Environmental Economics & Behavioural Science Study Guide: Policy, Psychology & Sustainability Explained

Explore key concepts in environmental economics and behavioural science, including COM-B, TPB, norm nudges, and citizen science. Learn how incentives, policy, and psychology shape sustainability outcomes in India, South Africa, and Colombia. 

Short-Answer Quiz

Instructions: Answer the following ten questions in 2-3 sentences each, based on the provided source context.

1. In the study of Karnataka State Road Transport Corporation (KSRTC) bus drivers, what were the overall effects of the driver training program versus the financial incentives scheme on fuel efficiency over the 12-month post-intervention period?
2. According to the study on industrial plants in Surat, what would be the estimated impact of fully enforcing the current command and control regulation (an emissions concentration performance standard) on emissions and costs?
3. What is "behavioural spillover," and what are the two main types identified in the research?
4. Briefly describe the three core components of the COM-B model, which is central to the Behaviour Change Wheel.
5. What is the Theory of Planned Behavior (TPB), and which additional factors did the study on e-waste management include to extend this model?
6. Describe the key differences between the informal ("free-market") and formal ("regulated") recycling systems in Bogotá regarding employment and mechanization.
7. What is a "norm nudge," and what are the two main ways it can encourage pro-environmental behaviour?
8. Based on the study of KSRTC drivers, what explanation is offered for why personality traits like honesty and pro-socialness have minimal effect on job performance?
9. Define pyrolysis and gasification, and identify the primary products of each process.
10. What is "citizen science," and what are the two primary ways it can be considered a pro-environmental behaviour?

Essay Questions

Instructions: The following questions are designed for longer, essay-format responses. Use the information presented in the source documents to construct a comprehensive argument for each prompt.

1. Compare and contrast the effectiveness and underlying psychological mechanisms of different pro-environmental behaviour interventions, such as economic instruments (incentives, taxes), information-based strategies (education, feedback), and contextual changes (nudges, defaults), as discussed across the provided sources.
2. Discuss the role of context—including social, economic, infrastructural, and political factors—in shaping the success of environmental policies and interventions. Use specific examples from the studies on KSRTC drivers, Surat industrial plants, Bogotá's recycling system, and household air pollution in South Africa.
3. Analyze the argument that pro-environmental behaviour is a moral issue. Incorporate concepts such as the Norm Activation Model, Goal Framing Theory, materialistic values, and environmental identity as presented in the source materials to support your analysis.
4. Evaluate the strengths and limitations of focusing on individual behaviour change versus systemic or structural change to address environmental problems. Reference the discussions on "consumers vs. citizens," grassroots initiatives, the Multi-Level Perspective (MLP), and the role of government policy and regulation.
5. Explore the challenges and opportunities of applying psychological theories developed in one context to another, particularly in designing and evaluating environmental interventions in developing countries. Draw on the case studies from India (KSRTC, Surat) and South Africa (HAP) to illustrate your points.

Quiz Answer Key

1. Over the entire 12-month post-intervention period, the driver training program had a minimal and statistically insignificant impact on fuel efficiency. In contrast, the financial incentives scheme led to a statistically significant increase in kilometers per liter (KMPL) of 0.0168 when controls were applied, and this effect persisted for the full twelve months.
2. Fully enforcing the current command and control regulation in Surat is estimated to lead to a 66% reduction in average annual emissions. This significant reduction in pollution would be achieved at a moderate average abatement cost of Rs. 36,150 per year ($556) per plant.
3. Behavioural spillover is the effect a behaviour targeted by an intervention has on other behaviours not targeted by the intervention. The two main types are positive spillover, where a change in one pro-environmental behaviour increases the likelihood of engaging in others, and negative spillover, where it decreases that likelihood (e.g., through moral licensing).
4. The three core components of the COM-B model are Capability, Opportunity, and Motivation. Capability refers to a person's psychological and physical ability to engage in a behaviour. Opportunity refers to the physical and social environment that enables or hinders the behaviour. Motivation includes the mental processes, both automatic and reflective, that activate or inhibit behaviour.
5. The Theory of Planned Behavior (TPB) is a psychological model used to understand and predict behaviour, focusing on attitude, subjective norms, and perceived behavioural control as predictors of behavioural intention. The e-waste study extended this model by including four additional factors: Government Policy, Environmental Concern, Financial Benefits, and Awareness.
6. Bogotá's informal recycling system employs more people, including the poorest members of society, and is almost entirely un-mechanized, relying on human- and animal-drawn carts. The formal system is more legible and modern, employing fewer people who work for a flat rate and using mechanized collection trucks, which results in higher vehicle-kilometers traveled.
7. A norm nudge is a behavioural intervention that encourages pro-environmental behaviour by targeting expectations about what others do (empirical expectations) and approve of (normative expectations). It can work by correcting incorrect expectations (e.g., people underestimate others' pro-environmental convictions) or by making pro-environmental behaviours more salient and top-of-mind.
8. The study hypothesizes that the high wage premium KSRTC drivers receive (Rs. 30,000-50,000 per month compared to Rs. 10,000-20,000 for private drivers) leads to a large applicant pool. This allows management to be selective on multiple dimensions during recruitment, selection, and retention, indirectly creating an unusually honest and pro-social group of employees where these traits are less predictive of performance variations.
9. Pyrolysis is the oxidation of waste in the absence of oxygen, producing tar (a carbon-rich liquid), char (a carbon-rich solid), and gases like H2, CO2, and CH4. Gasification occurs in a hot, "air lean" environment with insufficient oxygen for complete combustion, resulting in two products: syngas (a combustible gas mixture) and a solid (unburned waste and char).
10. Citizen science is a process where the public contributes to science by collaborating with professional scientists. It is a pro-environmental behaviour in itself because the activity directly contributes to understanding or conserving the environment (e.g., collecting litter data). It also acts as a catalyst for other behaviours by increasing participants' knowledge, self-efficacy, and intentions to engage in other pro-environmental actions.

Glossary of Key Terms

Term	Definition
Anaerobic Digestion	A biological process in which microorganisms degrade waste slowly in an anaerobic (oxygen-free) environment. It breaks down organic matter, leading to the production of biogas (CO2 and CH4).
APCD (Air Pollution Control Device)	Technology installed at industrial plants to reduce pollutant emissions from stacks (chimneys).
Behaviour Change Wheel (BCW)	A comprehensive model for designing and evaluating behaviour change interventions, structured around the COM-B behaviour system at its core, surrounded by intervention functions and policy categories.
Behavioural Spillover	The effect a behaviour targeted by an intervention has on other behaviours not targeted by the intervention. It can be positive (encouraging other PEBs) or negative (discouraging other PEBs).
Biospheric Values	Values reflecting a concern for nature and the environment for their own sake.
Cap and Trade	A market-based pollution control policy where a total cap on emissions is set, and firms can buy or sell permits to emit. The market price for permits is determined by supply and demand.
Citizen Science	A process whereby members of the public contribute to science by collaborating with professional scientists.
COM-B Model	A framework for understanding behaviour based on three interacting components: Capability (physical and psychological ability), Opportunity (physical and social environment), and Motivation (reflective and automatic mental processes).
Command-and-Control (CAC) Regulation	A type of environmental regulation that mandates specific actions or outcomes, such as emissions standards, technology mandates, and bans on certain operations.
Composting	A biological process that uses aerobic microorganisms to convert biogenic (organic) wastes into compost, a soil amendment.
Dice Task	An experimental measure of dishonesty where participants roll a die multiple times in private and are paid based on their self-reported outcomes, allowing researchers to measure cheating at a group level by comparing the reported distribution to the theoretical one.
Eco-driving	A set of driving techniques designed to maximize fuel efficiency, such as accelerating moderately, maintaining a steady pace, and avoiding sudden starts, stops, and idling.
E-waste (Electronic Waste)	Discarded electrical or electronic equipment (EEE). It often contains toxic substances that can negatively impact humans and the environment if not managed properly.
Emissions Concentration Standard	A regulation that sets a permissible limit on the concentration of pollutants (e.g., mg/Nm3) that can be emitted from the stacks of an industrial plant.
Emissions Load Standard	A regulation that sets a cap on the total mass of a pollutant (e.g., tonnes/year) that can be emitted by a plant over a specific period.
Emissions Tax	A market-based instrument where a tax is levied on each unit of pollution emitted, creating a financial incentive for firms to reduce their emissions.
Environmental Self-Identity	The extent to which an individual sees themself as a type of person who acts in an environmentally friendly way.
Gasification	A thermal process that converts waste to energy by burning fuel in a hot (T > 650 ºC) and "air lean" (oxygen-deficient) environment, producing syngas and a solid char.
Goal Framing Theory (GFT)	A theory positing that three overarching goals—hedonic (feeling good), gain (protecting resources), and normative (acting appropriately)—jostle for prominence and guide how an individual frames and responds to a situation.
Grassroots Innovations	Innovations operating in civil society arenas, involving committed activists experimenting with social innovations and greener technologies, often in response to local problems.
Incineration	A thermal treatment process that uses controlled combustion with excess air to reduce the volume of solid waste, often with the goal of recovering energy from the heat produced.
KMPL (Kilometers Per Liter)	A measure of fuel efficiency used in the study of KSRTC bus drivers.
KSRTC (Karnataka State Road Transport Corporation)	A public transport agency owned by the Government of Karnataka, India, and the setting for studies on bus driver efficiency and personality traits.
Life-Course Transitions	Significant life events such as having a first baby, retiring, moving house, or becoming a student, which disrupt everyday routines and may serve as 'windows of opportunity' for behaviour change.
Materialism	A value system that places a high level of importance on acquiring material goods to improve wellbeing, self-identity, and social status.
Moral Licensing	A cognitive bias and form of negative spillover where engaging in a positive behaviour (like a pro-environmental action) makes an individual feel justified in subsequently engaging in a negative or less virtuous behaviour.
Multi-Level Perspective (MLP)	A model for analyzing social transformation processes that conceptualizes change as an interaction between three levels: niches (where radical innovations emerge), socio-technical regimes (the established system), and the socio-technical landscape (wider contextual developments).
Norm Activation Model (NAM)	A model explaining pro-social and pro-environmental behaviour based on moral obligation (personal norm), which is activated by awareness of consequences and ascription of responsibility.
Norm Nudge	A behavioural intervention designed to encourage pro-environmental behaviour by targeting people's expectations about what others do (empirical expectations) and what others approve of (normative expectations).
Nudging	A concept in behavioural science, also known as choice architecture, that involves a simple change to the context in which people make decisions to predictably alter their behaviour without forbidding options or changing economic incentives.
Perceived Behavioural Control (PBC)	An individual's perception of the ease or difficulty of performing a particular behaviour; a core component of the Theory of Planned Behavior.
Pro-environmental Behaviour (PEB)	Behaviour that people adopt with the intention to benefit or not harm the environment. The concept is also defined more broadly as behaviour that is less harmful to the environment.
Pyrolysis	The oxidation of waste in the absence of oxygen, resulting in the production of char (a carbon-rich solid), tar (a carbon-rich liquid), and various gases.
Rebound Effect	The phenomenon where efficiency gains in technology are offset by increased consumption, meaning that some or all of the potential environmental savings are lost (e.g., driving a more fuel-efficient car more often).
SAFED (Safe and Fuel Efficient Driving)	A set of driving techniques that have co-benefits for both safety and fuel efficiency.
Sanitary Landfill	An engineered waste disposal facility designed to limit the health and environmental impact of waste by using liners, leachate collection systems, and gas extraction systems.
Subjective Norms	The perceived social pressure to engage in or refrain from a behaviour; the opinions of whether most people agree with the behaviour. A core component of the Theory of Planned Behavior.
Theory of Planned Behavior (TPB)	A psychological theory that links beliefs to behaviour, positing that behavioural intention is the most important determinant of behaviour, and that intention is influenced by attitude, subjective norms, and perceived behavioural control.
WEEE (Waste Electrical or Electronic Equipment)	The term for e-waste when electrical or electronic equipment is discarded or thrown away without proper recycling.