Sufficiency without regret

Abstract

The notion of sufficiency has gained considerable traction in many social sciences as well as in environmental and energy policy. However, sufficiency is not widely discussed in economics, most likely because it is seen as being hard to identify or uninteresting in the context of the standard model of rational choice. In this paper, we introduce a concept of sufficiency, which we define as a change of lifestyle that reduces environmental externalities without compromising individual well-being. We advance a framework of individual choice, where individuals select lifestyles and face uncertainty regarding their preferences in hitherto not experienced lifestyles. We show that changes towards sufficiency are feasible in this setting but, although they can be beneficial to the individual, they might require policy support.