Abstract

We discuss what makes a “good” environmental nudge from the policy maker’s point of view. We first delineate what is paternalistic about environmental nudges. We then discuss the effectiveness of nudges, including their paradoxical effects on the targeted behaviour, as well as possible collateral effects on the decision-maker’s wellbeing. We also discuss why the libertarian and ethical aspect of nudges may render them more, and not less, attractive as policy instruments and decision aids. We conclude by discussing accuracy and privacy concerns of information-based nudges, and with some recommendations for the design of effective and ethical nudges.