Publisher's Synopsis
How and why behavioral economics can predict consumers' daily behaviors change. Experience shows that people are by no means consistently rational. Such as one smoker will reduce to smoke suddenly, the reasons may include health factor, air pollution factor, cigarettes price increasing factor, income reducing factor, living habit changing factor, family and friend bad relationship factor to influence whose smoking behavior. So, their emotion will be influenced to be poor and it can bring the smokers' smoking behavior changes to be influenced to less smoking. It is good example to make them act irrationally.Behavioral economic investigates why and how people act irrationally. It is among the newest and most fascinating are as of academic study, combining economics and psychology and it is an understanding develops as to how the mind and the brain work, so behavioral economists are providing greater insight into what really drives people to act.I shall explain economists can apply behavioral and environmental economic to predict energy consumers' behavioral changing as below: If the economic process consists of temporarily re-arranging some of the earth's resources, energy is what brings about the characteristics that change of scope. Nowadays, human begins to feel where the use of the world energy has become careless, such as drought and the energy crisis. Although this issue is not tangible commodity, but this issue can let human to feel the worse pollution brings to air and water pollution, drought natural environment damage if we still waste to use energy daily. To understand the role of energy how acts in economic process. I indicate this example, for one farmer, he has arranged the scope of his economic process in such as a way that he requires energy in high density forms. The reason is fundamentally that he requires much of it for eventual transformation into motion, whether for transport or in fixed installations. The farmer concern how he use energy for his farming activity which it is easily carried either with him in his hand farming tool using or farming agriculture machine tool using method. It needs to be in a concentrated and tangible form to choose either of one method. Whether the farmer consider the environment pollution issue if he use any farming machines to replace hand tools to work in agricultural daily tasks aspect. If the farmer feels that farming machine can bring air pollution more easily, then he will choose to do farming tasks by hand, although he feels hard and spend long time to do farming tasks, but he can protect our earth to be polluted by the dirty air. So, energy need must be reduced when the farmer decides not to use farming machines to work on much time., even he does not choose to use farming machine to work on farm. Consequently, oil or electricity need will reduce to the farmer. It is one good example how air pollution influences energy consumers' behavior.
