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The ability of economic incentives to promote environmentally friendly behavior has been questioned in the literature. Most studies investigating this issue are grounded in the agent-based rational choice model. The aim of this study is to expand our insights by applying an alternative theoretical framework combining elements from classical institutional economics and self-determination theory to study incentives for waste sorting. The analysis is based on data from a Norwegian municipality, Ulstein, which introduced and later terminated a differentiated waste fee. There are three main findings. First, the important role of normative motivation for sorting household waste is confirmed. Second, the economic incentive had a divisive effect on the motivation to sort household waste. Perceived autonomy linked to fundamental values about environmental concern seems to play an important role in explaining why half the sample reports no extra efforts in sorting waste as a response to the economic incentive. The other half was influenced by the external logic given to them (i.e., to save costs and hence report increased motivation to sort household waste). Finally, an increased practice of illegal waste disposal was observed as a response to the differentiated waste fee. [ABSTRACT FROM AUTHOR]

Abstract: Environmental value transfer needs to be understood in the context of scientific information use in general. This provides a different perspective upon the reasons why benefit transfer in particular appears so controversial and raises concerns over the limited types of validity testing being undertaken by those supporting such applications as ecosystem services valuation. Another key issue, which we emphasise, is the unintentional challenge to standard economic theory raised by the models used to conduct value transfers. Existing value transfer practice reveals the need for a more inclusive approach if environmental values are to be addressed. We argue that there are robust alternative means for including multiple environmental values in decision processes, these cannot be dismissed out of hand, and analysts should be expanding their understanding of the available approaches which include attitude and norm measures, multi-criteria analysis and participatory deliberative institutions. [Copyright &y& Elsevier]

Abstract: This paper is about how institutions determine choices and the importance of this for environmental policy. The model of individual rational choice from neoclassical economics is compared with the model of socially determined behavior. While in the first case, institutions are either exempted from or understood as mere economizing constraints on behavior, the latter perspective views institutions as basic structures necessary also to enable people to act. The paper develops a way to integrate the individualistic model into the wider perspective of social constructivism by viewing it as a special form of such construction. On the basis of this synthesis three issues with relevance for environmental economics are discussed. First, the role of institutional factors in the process of preference formation is emphasized. Next, the role of institutions for the choice of desired states of the environment is analyzed. Finally, the effect of various policy instruments to motivate people to produce these states is discussed. It is concluded that the core policy issue is to determine which institutional frameworks are most reasonable to apply to which kind of problem. Issues, which from the perspective of neoclassical economics are pure technical, become serious value questions if understood from an institutional perspective. [Copyright &y& Elsevier]

Economic valuation of the environment is disputed, in part, due to the number of anomalies. Reactions to these anomalies have included adding new auxiliary hypotheses to the core model or dismissing the whole undertaking. This paper takes a third route, and uses observations made in valuation studies to improve choice theory. The paper covers the information problem, the issue of preference formation, and underlines the role of the social sphere in defining what becomes individually rational. While the findings may not simplify theory, they may help us become more realistic and to understand errors produced by illegitimate simplifications. [ABSTRACT FROM AUTHOR]

Discusses the dispute over nitrogen taxes in agriculture in Europe. Debate over nitrogen fertilizer taxes in Europe as empirical basis; Difficulties involved when introducing the logic of economic efficiency into environmental policy; Influence of disagreements over tax effects on the policy-making process; Vulnerability of environmental policy to confrontations across sectors of responsibility.