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Fables of the Reconstruction: Human Emotion and Behavioral Heuristics in Environmental Economics

63 Studia Juridica 77-96 (2016)

20 Pages Posted: 19 Dec 2015 Last revised: 3 Feb 2017

James Ming Chen

Michigan State University - College of Law

Date Written: December 17, 2015

Abstract

Environmental economics provides an especially rich source of insights into the impact of emotion, cognitive bias, and behavioral heuristics on risk assessment and management. In contrast with the ambivalent reception of behavioral psychology within mathematical finance, the impact of emotion and innate heuristics on environmental decision making has never been doubted. From the affect heuristic to the endowment effect and disaster psychology, environmental choices harbor the richest trove of economic departures from strict rationality.

Keywords: environmental economics, behavioral finance, Roll's critique, natural disasters, biodiversity

JEL Classification: Q54, Q57, G02

Suggested Citation

Chen, James Ming, Fables of the Reconstruction: Human Emotion and Behavioral Heuristics in Environmental Economics (December 17, 2015). 63 Studia Juridica 77-96 (2016). Available at SSRN: https://ssrn.com/abstract=2705196 or http://dx.doi.org/10.2139/ssrn.2705196

James Ming Chen (Contact Author)

Michigan State University - College of Law ( email )

318 Law College Building
East Lansing, MI 48824-1300
United States

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