No Man is an Island: Social Coordination and the Environment

Department of Economics, University of Oslo, Memorandum No 07/2019 June 2019

25 Pages Posted: 21 Jun 2019

See all articles by Karine Nyborg

Karine Nyborg

University of Oslo - Department of Economics; IZA Institute of Labor Economics

Date Written: June 17, 2019

Abstract

Humans are fundamentally social. Social activities require coordination, which may yield multiple equilibria in the form of stable, self-reinforcing patterns of herd behavior. Since environmental impacts can differ substantially between alternative equilibria, such self-reinforcing behaviors may, from an environmental perspective, be viewed as representing virtuous or vicious cycles. Environmental policies can help break the self-fulfilling expectations of vicious cycles, tipping the economy to more environment-friendly equilibria.

Keywords: environmental policy, multiple equilibria, social interaction, tipping points

JEL Classification: D10, D62, D91, Q01, Q50, Q58

Suggested Citation

Nyborg, Karine, No Man is an Island: Social Coordination and the Environment (June 17, 2019). Department of Economics, University of Oslo, Memorandum No 07/2019 June 2019 , Available at SSRN: https://ssrn.com/abstract=3405207 or http://dx.doi.org/10.2139/ssrn.3405207

Karine Nyborg (Contact Author)

University of Oslo - Department of Economics ( email )

P.O.Box 1095 Blindern
Oslo, N-0317
Norway

HOME PAGE: http://folk.uio.no/karineny/

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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