Promoting Sustainable Resource Consumption from the Perspective of Behavioral Economics: A study on the Saudi Society

Abstract

The present paper aims to explore the theories and tools of behavioral economics to better understand the drivers of individual and collective behaviors related to consumption patterns. It also seeks to examine the potential of employing behavioral economics to guide people toward more rational and sustainable consumption, with a particular focus on specific applications such as water, electricity, and food. This study employs a descriptive and analytical methodology to review the existing literature on rational consumption and behavioral economics and its applications across various domains. It further derives practical applications, supported by examples, illustrating how behavioral economics tools, such as nudging, framing, reinforcement, and self-motivation, can be utilized to steer individuals toward responsible consumption of economic resources, especially within the local context of the Kingdom of Saudi Arabia. The paper concludes with a set of insights and recommendations drawn from behavioral economics, highlighting the relevant stakeholders who could benefit from such approaches. This is particularly relevant given Saudi Arabia’s increasing openness to integrating behavioral economics into its policies. The study’s findings are expected to contribute to a better understanding of how behavioral economics can be employed to foster a culture of rational and sustainable consumption in Saudi society, and in other societies more broadly.