Behavioural Economics, Sustainable Food Production and Consumption
Lead Research Organisation:
University College London
Department Name: Bartlett Sch of Env, Energy & Resources
Abstract
Models and theories in the field of behavioural economics challenge the neoclassical models of economic theory in which agents are assumed to be perfectly rational. The emerging field of behavioural economics suggests that it may be problematic to assume rational behaviour of individuals because (a) this behaviour is often led by contrasting motivations (extrinsic and intrinsic) and incentives (financial and non-financial), and (b) individuals' decisions are affected by social factors (such as social pressure) and psychological constraints (such as lack of self-control).
Policies that are constructed starting from the neoclassical economic theories may not work or deliver unexpected outcomes if these theories cannot accurately predict people's behaviours. For this reason, the study of behavioural economics has recently become more and more appealing to policymakers. Its implementation can, in fact, improve benefit-cost analysis and the understanding of how people will respond to these policies.
As the study of behavioural economics applications to policy in the context of environmental and sustainable-food-related challenges is new, the aim of the project is to investigate how behavioural insights can lead to sustainable paths in food production and consumption, using nudges and developing analytical methods to support improved decision-making related to food.
This research will integrate research methods from psychology and economics by developing new behavioural experiments and field trials to collect data.
- As far as the behavioural experiments are concerned, we will randomly recruit participants to come to UCL and we will ask them to make decisions related to food consumption and production while presenting them with different stimuli. For example, one experiment focused on food consumption will involve the use of the application "Giki". Giki is an app that delivers detailed information about the product, such as whether it is made with sustainable palm oil or not. Some participants will be asked to choose among different products while using the app, some without using the app, and we will check whether a digital intervention as such can help consumers make more sustainable consumption choices.
- As far as the field trials are concerned, we are currently working on a collaboration project with Westminster City Council. The aim of this will be to reduce food waste and increase recycling of food packaging. In addition to this, we are working on establishing a collaboration with SHEFS.
The research will then require the use of econometric techniques for the analysis (addressing issues related to causality, self-selection, identification and construction of adequate counterfactual). By analysing how people respond to different economic and psychological inputs, such as incentives and nudges, both in a laboratory and field context, this research will determine which of these inputs are better fit to steer (food) production and consumption behaviours towards more sustainable ones. The ultimate aim of this research will be to construct behaviour change interventions with the aim of advising both policymakers and individual households.
Policies that are constructed starting from the neoclassical economic theories may not work or deliver unexpected outcomes if these theories cannot accurately predict people's behaviours. For this reason, the study of behavioural economics has recently become more and more appealing to policymakers. Its implementation can, in fact, improve benefit-cost analysis and the understanding of how people will respond to these policies.
As the study of behavioural economics applications to policy in the context of environmental and sustainable-food-related challenges is new, the aim of the project is to investigate how behavioural insights can lead to sustainable paths in food production and consumption, using nudges and developing analytical methods to support improved decision-making related to food.
This research will integrate research methods from psychology and economics by developing new behavioural experiments and field trials to collect data.
- As far as the behavioural experiments are concerned, we will randomly recruit participants to come to UCL and we will ask them to make decisions related to food consumption and production while presenting them with different stimuli. For example, one experiment focused on food consumption will involve the use of the application "Giki". Giki is an app that delivers detailed information about the product, such as whether it is made with sustainable palm oil or not. Some participants will be asked to choose among different products while using the app, some without using the app, and we will check whether a digital intervention as such can help consumers make more sustainable consumption choices.
- As far as the field trials are concerned, we are currently working on a collaboration project with Westminster City Council. The aim of this will be to reduce food waste and increase recycling of food packaging. In addition to this, we are working on establishing a collaboration with SHEFS.
The research will then require the use of econometric techniques for the analysis (addressing issues related to causality, self-selection, identification and construction of adequate counterfactual). By analysing how people respond to different economic and psychological inputs, such as incentives and nudges, both in a laboratory and field context, this research will determine which of these inputs are better fit to steer (food) production and consumption behaviours towards more sustainable ones. The ultimate aim of this research will be to construct behaviour change interventions with the aim of advising both policymakers and individual households.
Organisations
People |
ORCID iD |
| Carole Dalin (Primary Supervisor) | |
| Arianna Buratto (Student) |
Studentship Projects
| Project Reference | Relationship | Related To | Start | End | Student Name |
|---|---|---|---|---|---|
| EP/R513143/1 | 01/10/2018 | 30/09/2023 | |||
| 2262921 | Studentship | EP/R513143/1 | 01/10/2019 | 30/09/2021 | Arianna Buratto |
| Description | An online experiment was conducted to investigate how well people can rate food products in terms of sustainability and what factors can influence their judgment. In particular, the effects of salience (whether a sustainability label was placed on the product packaging) and choice overload (high number of choices available) on consumer judgment were analysed. In addition to this, the experiment also looked at whether people are overconfident in their judgment of product sustainability, i.e. whether people believe to know more about sustainability than they actually do. It was found that choice overload reduced people's judgment accuracy: When many products are available to choose from, consumers struggle to find the most sustainable. It was also found that consumers' judgment was also lower in accuracy when choice overload was present and when a sustainability label was placed on a product that was not the most sustainable. As for the effect of overconfidence, it was found that when people believe to know more about sustainability than they actually do this brings them to have lower judgment accuracy. |
| Exploitation Route | This research highlights what may hinder consumers from correctly choosing environmentally friendly products when doing their food shopping. Further research may look into what other factors affect consumer choice and what can be done to help consumers shop being conscious of the environment. |
| Sectors | Agriculture, Food and Drink,Environment,Retail |