Social and Behavioral Sciences Commons^™

A basic premise in economics is that companies should pay all of the costs that are incurred in the process of producing their goods and services. The reason? By incurring all of the costs in production, the price charged by the company will reflect those costs. The price consumers pay, then, will also reflect all of the costs incurred in production. This leads to price efficiency, a major goal in free-market economic principles.

Unfortunately we don’t always include the costs to the environment in the production process. Take, for example, electricity generation, which can be accomplished using different inputs. Coal-burning …

Our climate is changing. And the trend of this climate change shows the earth is, on average, getting warmer. We in New England emerged from a very cold winter in 2014 making it hard for us to see (and thus believe) the earth is getting warmer. But this is the trick of cli- mate change: The pattern of overall warming is hard to see on a day-to-day basis. We tend to judge our climate through experiencing our local weather patterns: When the weather is cold like it has been in our region over the past winter, it is hard for …

Public planning for sustainability implies a forward-looking approach that often includes imagining future harm and taking steps to prevent that future harm before it occurs. A major challenge to implementing such forward looking, or precautionary, a policy instrument is managing the impacts such policies have on existing expectations. The purpose of this paper is to discuss the role of risk perception in the development of forward-looking policy instruments. A case study example focused on coastal flood insurance in the USA is presented to highlight the difficulty of implementing sustainable policy goals when current policies incentivise the discounting of risk. The …