Long-Term Costs Underestimation
Climate change is a growing concern nowadays, especially when our economy revolves around manufacturing and increasing demand for consumption post-industrial revolution. The effects of environmental damage can not be seen in days, but rather be experienced for upcoming decades. Since these effects are not visible to our naked eye in the short term, humans often neglect the consequences of sustainability in the long run. (MINING, 2021) There are certain cognitive biases attributed to this phenomenon, explaining why such a huge environmental problem is ignored. Once the issue is considered, humanity can deduce strategies that radically address the climate crisis.
Psychological factors in play
Source: https://ceoptions.com/2023/05/how-leaders-recognize-and-overcome-cognitive-biases-that-impede-critical-thinking/
Cognitive biases are defined to be deviations from reality and often behave in an identifiable pattern, shaping how we perceive information about climate change. Individuals tend to favor instant satisfaction in the present over long-run results, also known as temporal discounting. The immediate costs of economic growth are often ignored, including rising energy prices and increasing carbon emissions are problems on the surface that economists consider. Meanwhile, civilians can suffer from lung diseases from pollution or cancer due to consuming contaminated food and water for a long time. Economists and government bodies often fail to resolve these long-term effects. (Cherry, 2024)
A reason for underestimating climate risks is attributed to the availability heuristic. This is when a person is dependent on the information that first appears in front of them, only relying on it and neglecting deeper research. This normally results in insufficient data retrieved from the individual and leads to irrational decision-making. For example, people who have not been through a tropical storm will tend to underestimate its potential destruction. This is because they have never been exposed to such extreme weather events, thus dismissing storms as a threat and not coming up with appropriate measures to limit the risks. (The Decision Lab, 2024)
The concept of loss aversion is also worth mentioning in this context. According to the theory, people perceive losses far more traumatized than the equivalent gains. In this case, regulatory authorities tend to not implement policies that encourage sustainability practices because there are short-term costs that go along with it such as higher costs of production (energy bills, raw materials, enhanced technology) that reduce the company’s profit. Business owners are often focusing on limiting these costs more, as they hurt the balance sheet in the short run more than climate change. (Sediyama, de Castro Martins and Teodoro, 2020)
The Role of Information and Framing
The sentiment of people toward climate issues also depends on how information is framed and presented. Different methods of delivering news can affect how individuals perceive consequences and the urgency of actions. The media is to blame for this. Public news and social media can greatly influence the public’s perspective of a problem. For instance, if the media wants to mitigate public attention from the environmental issue, they can word it as a “scientific issue”. This makes the problem become generic, excluding the needs for individual concerns, leading to ignorance and disengagement from the general public. (Riccardo Novaro et al., 2023)
Source: https://thedecisionlab.com/biases/framing-effect
In addition, the concept of climate change is unknown to many people, mostly because of the complicated scientific climate models displayed in the news. This can lead to confusion and uncertainty, for the majority of the population. Behavioral theory suggests that when faced with the unknown of the future, people tend to hold back from taking action and be extra cautious. Therefore, if the media outlets and politicians do not emphasize the drawbacks of inaction such as increased unemployment, loss of lives and homes during hurricanes, and farmers struggling during harvest seasons due to drought, then no immediate actions will be taken and things will only get worse.
In the end, we are responsible for causing significant damage to the environment on our beloved planet. The solution requires collaboration from global governments, and organizations and the participation of every household. Politicians can create policies that fine companies emitting CO2, households can replace the use of plastic for recyclable materials. Each small contribution can lead to a more sustainable world for the generation to thrive and prosper.
References
Cherry, K. (2024). How Cognitive Biases Influence the Way You Think and Act. [online] Verywell Mind. Available at: https://www.verywellmind.com/what-is-a-cognitive-bias-2794963 [Accessed 26 Sep. 2024].
MINING. (2021). Decommissioning, Environmental Costs Often Underestimated – Study. [online] Available at: https://www.mining.com/decommissioning-other-environmental-costs-often-underestimated-study/ [Accessed 25 Sep. 2024].
Riccardo Novaro, Nasi, G., Cucciniello, M. and Grimmelikhuijsen, S. (2023). The Power of Framing: the Role of Information Provision in Promoting Whistleblowing. Public Administration. doi:https://doi.org/10.1111/padm.12977.
Sediyama, C.Y.N., de Castro Martins, C. and Teodoro, M.L.M. (2020). Association of Loss Aversion, Personality Traits, Depressive, Anxious, and Suicidal Symptoms: Systematic Review. Clinical Neuropsychiatry, [online] 17(5), pp.286–294. doi:https://doi.org/10.36131/cnfioritieditore20200505.
The Decision Lab (2024). Availability Heuristic. [online] The Decision Lab. Available at: https://thedecisionlab.com/biases/availability-heuristic [Accessed 26 Sep. 2024].