- List of Figures
- List of Tables
- List of Abbreviations
- List of Contributors
- Retrospective, Perspective, and Prospective: Introduction to the Oxford Handbook on Business and the Natural Environment
- Competitive Strategy and the Environment: A Field of Inquiry Emerges
- International Business and the Environment
- Environmental Entrepreneurship
- The Value of Managing Stakeholders
- Industry Self-Regulation and Environmental Protection
- Environmental Governance
- Business and Environmental Law
- Cognitive Barriers to Environmental Action: Problems and Solutions
- Intergenerational Beneficence and the Success of Environmental Sustainability Initiatives in Organizational Contexts
- Organizational Culture and Environmental Action
- Institutional Approaches to Organizations and the Natural Environment
- Institutional Pressures and Organizational Characteristics: Implications for Environmental Strategy
- Social Movements, Business, and the Environment
- Greener Supply Chain Management
- Closed-Loop Supply Chains
- Industrial Ecology: Business Management in a Material World
- Information Systems, Business, and the Natural Environment: Can Digital Business Transform Environmental Sustainability?
- From Green Marketing to Marketing for Environmental Sustainability
- Why not Choose Green? Consumer Decision Making for Environmentally Friendly Products
- Using Market Segmentation Approaches to Understand the Green Consumer
- Sustainability and Social Responsibility Reporting and the Emergence of the External Social Audits: The Struggle for Accountability?
- Environmental Management, Measurement, and Accounting: Information for Decision and Control?
- Corporate Environmental Financial Reporting and Financial Markets
- Values-Driven and Profit-Seeking Dimensions of Environmentally Responsible Investing
- Environmental Risks and Financial Markets: A Two-Way Street
- Corporate Decision-Making, Net Present Value, and the Environment
- The Relevance of the Natural Environment for Corporate Social Responsibility Research
- Business, Society, and the Environment
- The New Corporate Environmentalism and the Symbolic Management of Organizational Culture
- Critical Perspectives on Business and the Natural Environment
- Approaching Business and the Environment with Complexity Theory
- Beyond the Brave New World: Business for Sustainability
- Looking Back, Thinking Forward: Distinguishing Between Weak and Strong Sustainability
- Enterprise Sustainability 2.0: Aesthetics of Sustainability
- Tomorrow's C-Suite Agenda
- The Third-Generation Corporation
- Capitalism Critique: Systemic Limits on Business Harmony with Nature
Abstract and Keywords
This article investigates interventions at the micro level—the level of the individual—from both the citizen and policymaker perspectives. It concentrates on recognized cognitive barriers from the behavioral decision-making literature. It specifically highlights three cognitive barriers that impede sound individual decision-making that have particular relevance to behaviors impacting the environment. Then, it describes possible ways to overcome these cognitive barriers, first from the perspective of the individual citizen and then from the perspective of the policymaker. Over-discounting the future can contribute to a broad array of environmental problems. The three biases—positive illusions, egocentrism, and the tendency to discount the future—can have an interactive effect. They are innate and pervasive roadblocks that prevent individuals from adopting energy-efficient behaviors and technologies. It is noted that strategies are necessary to help policymakers overcome their loss aversion. Finally, the remaining questions on the research frontier are presented.
Harvard Business School, Harvard University
Lisa L. Shu is Doctoral Candidate in Organizational Behavior and Psychology, Harvard Business School, Harvard University.
Business Administration, Harvard Business School
Max H. Bazerman is the Jesse Isidor Straus Professor of Business Administration at the Harvard Business School at Harvard University. He is one of the pioneers of negotiation research, with a special focus on integrating judgment and decision-making biases. His recent work focuses on ethical decision making and predictable surprises.
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