A Behavioral Economic Analysis Of Environment

The economists in China have not studied behavioral economics profoundly, indeed, they are in a phrase of elementary studies in the theory, not mentioning to apply the theory to each field of the economy theory. This paper will try to apply the means of study and experiment in Behavior Economics to the theory study of environmental economics. I heartily wish it will help to begin the study in this field.People don't judge and decide everything completely reasonably. It appears that human just own limited-reason. In fact, from the basic theory of behavioral economics, economists can easily derive the basic theory of economics. As a new branch of economics, environmental economics certainly obeys the general theory and means of economics. So the theory and means of behavioral economics can be applied to enviornmental economics widely.In this paper, I apply the theory and means of behavior economics to analyse the behaviors of consumption and investment of environment elaborately. First, the concept "environmental consumption" is put forth. Then there is an analysis of man of business'behaviors of environmental consumption and investment under two conditions (if chasing the maxmum welfare). At last, I analyze the mechanism of evironment protection based on behavioral economics, and point out that we must introduce the third mechanism, namely society mechanism.In order to introduce environment as commodity into market, we can make some special market rules (such as Transferable permits); we can also change the production mode, push Cleaner Production and Recycle Economy, and establish Eco-Industrial Parks(EIPs);at last,we can apply society mechanism to enhance people's environmental protection senses,and make environmental protection become people's conscious behavior.