Environmental regulation of households: An empirical review of economic and psychological factors

Abstract

The literature on sustainable consumption and environmental regulation of household behavior is dominated by conceptual and normative approaches. As a result, many suggestions lack a firm empirical basis. To overcome this deficiency, econometric studies in three areas of environmentally relevant activities of households are reviewed: residential use of energy, generation of solid waste and recycling, and residential use of water. Next to price and income elasticities, attention is devoted to individual socio-economic features and psychological factors, such as attitudes, knowledge, perceptions and values. Potential psychological determinants and related insights are further examined by discussing a range of representative and illustrative statistical-psychological studies of environmental behavior. One important general finding is that there are very few empirical studies that systematically combine socio-economic and psychological determinants. A range of insights for environmental policy is derived, and research recommendations are offered.