Summary

The journal discusses how the behavior of corporation and people effect the environment. But
with the passage of time concept about environmental economics changes and many authors get
noble price for changing these concepts. Profits concept of business moved to measuring the
consumer insight and planet saving.

In Western Washington University many scholars gathered and point out there concept about
environmental behavior so that general perspective from current research should be obtained.

While utilization the main factor includes fairness and consumer sovereignty will be counted.
Fairness is the fact of life. The concept of fairness is not included in different models of
economics because it contains too much ambiguity but Johansson Stenman and Konow disagree
and said that if fairness should included in models they create relevance with model and show
sincerity toward environment. The basic elements of distributive preference are accountability,
efficiency, need and equality. Equality refers to moral value e.g. every person would have the
equal rights and if any of them behave unfairly should be accountable and system should be
efficient Accountability: if some one is polluted the environment he should have to pay the same
amount because of his misbehavior. Efficiency should be increase by giving punishment to all
those who try to harm environment. Firms and Governments do not behave positively toward
environment but there constituents and employees take one step toward it.

Carlsson environmental behavior describes under four variables are incoherent preference,
learning and constructed preference, context dependence and hypothetical bias. Carlsson show
the interrelationship between these variables. The understanding of behavior economics should
be improved by preference method. Reveled preference should b from choices but normative
choice will be the actual one. From a long period of learning stable preference about any market
survey emerge. Carlsson finding are based on literature. Divergent Behavior of lab and real
world are compared and then finds that it is very difficult to find hypothetical bias because other
factors are also included in preference.

Knetsch was the first scientist who explains the values of gain and loss and discuss
environmental valuation. Knetsch started the concept of gain and loss from 1974 to duck hunters
in their valuation of gain versus losses of breeding habits. Knetsch describe counterexample if
some merchant have some inventory or good he does not think of decreasing their prices. The
choice of value is not simple; rather the reference state may depend on the psychological
preference. Knetsch ignores the concept of cost benefits analysis of natural resource damage.

Hepburn, Duncan and papachristodoulou are the creator of exponential discounted utility model.
In which he conclude hyperbolic discounting may account for some human and animal behavior,
and demonstrate that the discounting model is fishery with minimum viable population.

Asheim