About time: An integrative approach to effective environmental policy

Abstract

Intertemporal trade-offs are ubiquitous in environmental decision-making and policy, yet comprehensive, practical guides are lacking. This paper introduces an adaptive, iterative approach to environmental policy, combining the insights of economics, psychology, and anthropology. We first summarize the major paradigms of each discipline, including models, concepts of time preference, strengths, and blind spots. Subsequently, we illustrate the integrative approach through four real-world environmental examples: a shopper purchasing a light bulb, an organization doing building renovations, a community considering a new source of renewable energy, and international organizations developing index insurance for farmers in the Horn of Africa. One-dimensional approaches are ill-suited to real-world challenges such as these, because each discipline only tackles one facet of the issue. In contrast, with each discipline informing the others, the integrative approach is more than the sum of its parts. This paper provides a concise guide for applied researchers and policy makers alike.