Nudge: The Final Edition

by Richard H. Thaler

Some basic lessons of behavioral economics help explain why nations have not done more. Sadly, we have what amounts to a perfect storm, a confluence of factors that make collective action difficult. Here are the main obstacles: 1. Present bias. As we have seen, people tend to be much more concerned with now as opposed to later. Although scientists have been warning about the perils posed by climate change for decades, the most serious risks have often been seen to be off in the future, perhaps decades away. People have bills to pay now! It’s true that all over the planet, people are now facing risks and problems related to climate change. But at important moments, many leaders, and many voters, have seen climate change as a challenge for future generations, and they don’t vote. There is a big contrast here with COVID-19, in which the toll, in terms of illnesses and deaths, was felt in the here and now as friends, families, and political leaders got sick. 2. Salience. People can see smog, and they really don’t like it. Dirty air and water are both visible and scary. In many nations, including the United States, the public has demanded (and often received) cleaner air and water. By contrast, greenhouse gases are invisible in the air. If you can’t even see them, you might not worry about them. 3. No specific villain. For some threats, there is an identifiable perpetrator—a wrongdoer whose terrible deeds capture public attention. It’s not so hard to mobilize public attention a...