International Review of Environmental and Resource Economics > Vol 18 > Issue 4

The Timing of (Green) Incentives: Exploiting Opportunity Windows

Gilles Grolleau, ESSCA School of Management, France, gilles.grolleau@essca.fr , Naoufel Mzoughi, INRAE, Ecodéveloppement, France, naoufel.mzoughi@inrae.fr , Emilien Prost, ESSCA School of Management, France, emilien.prost@essca.fr
 
Suggested Citation
Gilles Grolleau, Naoufel Mzoughi and Emilien Prost (2024), "The Timing of (Green) Incentives: Exploiting Opportunity Windows", International Review of Environmental and Resource Economics: Vol. 18: No. 4, pp 491-521. http://dx.doi.org/10.1561/101.00000170

Publication Date: 11 Jul 2024
© 2024 G. Grolleau, N. Mzoughi and E. Prost
 
Subjects
Behavioral economics,  Biases,  Heuristics,  Environmental economics
 
Keywords
JEL Codes: D91Q58Q59
Environmental policiesincentivesopportunity windowtemporal landmarkstiming
 

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In this article:
1 Introduction 
2 Taking Stock on the Use of Incentives to Change Behavior 
3 Introducing the Timing Dimension of Incentives 
4 Practical Implications 
5 Conclusion 
Acknowledgment 
References 

Abstract

Incentives have been extensively studied in the management and policy literature, with most attention focusing on their type, magnitude, alignment, and effects. More recently, scholars paid attention to discounting issues and how these issues impact the effectiveness of incentives. Building on the nascent literature related to incentive timing, we argue that timing can offer an additional dimension to better characterize incentives and leverage their power by exploiting windows of opportunity. Using conceptual reasoning, we identify several mechanisms by which the timing of incentives can be used to increase their behavioral power. Specifically, well-timed (green) incentives can harness temporal landmarks, intermittence, immediacy and surprise effects, and intrinsic motivation reinforcement to reach environmental goals without significantly increasing the overall costs. We also indicate new avenues for further research such as designing a timing menu or considering time itself as an incentive.

DOI:10.1561/101.00000170