External publications

Behavioral changes during Asia's net zero transition: evidence from middle-class household consumption

Never, Babette
External Publications (2023)

Manila: Asian Development Bank

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A net zero transition to climate-neutral development in Asia needs to systematically include the consumer perspective. Net-zero transition policies including consumers will need to differentiate both between and within Asian countries, reflecting inequality in emissions, consumption patterns, and capabilities. The growing  and aspiring middle classes present the key consumer group that will shape the next decade in Asia. Key opportunities include changing consumer norms and aspirations before lock-in, while reaping co-benefits on local problems, and new job and market opportunities from rising consumer incomes, e.g., in (a) low-carbon  technologies, (b) new services/sharing economy, (c) refurbed and remanufactured products/circular economy, and (d) low-carbon buildings and construction. Future policies could integrate and expand sustainable consumption and production policies more systematically to unleash a virtuous cycle, combining regulations,  financial incentives and behavioural insights tools. Regulations and financial incentives are particularly useful for costly investments, complex decision-making situations, infrastructure support and steering unpopular choices. Behavioural insights tools are helpful for concrete, individual-level programs, the adoption of low- carbon technologies and addressing individuals with high environmental concern and intrinsic motivation. Sequencing and targeting measures in policy packages to ensure a timely and just transition is required.