Rethinking economic efficiency: Investment decisions in the service of environmental protection

The project has two main objectives in terms of rethinking economic efficiency for the sake of environmental protection: On the one hand, analyses are intended to improve the understanding of decision making and behaviour of actors which range from private households and companies to the public sector. In order to make decisions about investments, those responsible apply individual rationales. The focus here is on environmental decision-making, which is often marked by significant initial investments and the fact that effects and savings will only be reaped in the long term (and in some cases at completely different locations). Typical challenges for environmentally compatible investments are identified. On the other hand, the existing regulatory framework with its explicit or implicit economic efficiency requirements is also put to the test.

On the basis of the improved understanding, methodological-conceptual approaches are developed that favour decisions towards environmentally-sound investments. These approaches take into account legal, organisational, sectoral and actor-specific factors that influence short and long-term decisions. These approaches serve as the basis for deriving concrete proposals on how economic efficiency calculations can be changed in favour of environmental protection and resource planning, especially through the further development of environmental policy instruments and the legal framework.