Question

. Human bias is a serious impediment to forming beliefs that map on to reality. Corporations create impacts on the environment and community, and we sometimes ignore such impacts for the sake of gain, and allow negative externalities to accumulate into a mixed bag of unintended consequences. The way we talk about environmental and social problems has been a challenge to business, but how can we convince others (customers) that sustainability is a desirable end? Refer to the best/latest science or behavioural economics in describing a plan for nudging consumers toward sustainability

Answer 1

Answer to this question lies in Nudge theory' as explained by Richard Thaler. It explains how irrational we are and how with little 'nudges' we can make better and rational choices. It is true that through big data and advanced algorithms people are pushed towards biased opinions and also are made a marketable commodity.

For example- Rather than taxing firms which pollute. Incentives should be given if it keeps its pollution under control and also a small concession can be given to consumers of these products in the form of monetary/non monetary rewards.

For consumption of hazardous things like plastic also nudge can work. Govt. can buy plastic at higher costs to recycle and hence people will not throw it, they will keep it properly to earn monetary rewards. Govt. will have reduced dumping expenses.