The browser you are using is not supported by this website. All versions of Internet Explorer are no longer supported, either by us or Microsoft (read more here: https://www.microsoft.com/en-us/microsoft-365/windows/end-of-ie-support).

Please use a modern browser to fully experience our website, such as the newest versions of Edge, Chrome, Firefox or Safari etc.

Pol Campos . Photo

Pol Campos

Senior lecturer

Pol Campos . Photo

Social Preferences and Environmental Externalities

Author

  • Pol Campos-Mercade
  • Claes Ek
  • Magnus Söderberg
  • Florian H Schneider

Summary, in English

Standard economic theory assumes that consumers ignore the externalities they create, such as emissions from burning fossil fuels and generating waste. In an incentivized study (N = 3, 718), we find that most people forgo substantial gains to avoid imposing negative externalities on others. Using administrative data on household waste, we show a clear link between such prosociality and waste behavior: prosociality predicts lower residual waste generation and higher waste sorting. Prosociality also predicts survey-reported pro-environmental behaviors such as lowering indoor temperature, limiting air travel, and consuming eco-friendly products. These findings highlight the importance of considering social preferences in environmental policy.

Department/s

  • Department of Economics

Publishing year

2025-04

Language

English

Publication/Series

Working Papers

Issue

2025:6

Document type

Working paper

Topic

  • Economics

Keywords

  • D01
  • D62
  • Q53
  • social preferences
  • prosociality
  • environmental behaviors
  • externalities

Status

Published