B2813 - Behavioral Economics for Sustainable Systems

Course contents

Topic 1 – Framing the Challenge: Sustainability & Corporate Responsibility

What is sustainability? The triple bottom line (ESG). How companies contribute to and are affected by sustainability. How sustainability is measured (GRI, SDGs, ESG metrics). Key challenges for managers: trade-offs, long-term thinking, transparency.

Readings

• Adolph, J., & Beckmann, M. (2024). Corporate sustainability strategy: From definitional ambiguity toward conceptual clarification. Business Strategy and the Environment, 33(5), 4708-4729.
• Chen, S., Song, Y., & Gao, P. (2023). Environmental, social, and governance (ESG) performance and financial outcomes: Analyzing the impact of ESG on financial performance. Journal of Environmental Management, 345, 118829.
• Meuer, J., Koelbel, J., & Hoffmann, V. H. (2020). On the nature of corporate sustainability. Organization & Environment, 33(3), 319-341.
• Purvis, B., Mao, Y., & Robinson, D. (2019). Three pillars of sustainability: in search of conceptual origins. Sustainability science, 14(3), 681-695.
• Rasche, A., Morsing, M., Moon, J., & Kourula, A. (2023). Corporate sustainability–what it is and why it matters. Corporate sustainability: Managing responsible business in a globalized world, 1-26.
  
  

Topic 2 – Why Behavioral Economics? Biases in Corporate Decision-Making

Classical vs behavioral economics. Intention-action gap in corporate sustainability. Limits of information & incentives. Why behavior matters inside organizations, not just with consumers. Anchoring, status quo bias, loss aversion, framing, and present bias. Behavioral audit of typical corporate decisions.

Readings

• Fox, J. (2015). From “economic man” to behavioral economics. Harvard Business Review, 93(5), 78-85.

• Gino, F. (2017). The rise of behavioral economics and its influence on organizations. Harvard Business Review, 2-4.
• Kahneman, D. (2011). Thinking Fast and Slow. New York: Farrar, Straus and Giroux.
• Kahneman, D., Knetsch, J. L., & Thaler, R. H. (1991). Anomalies: The endowment effect, loss aversion, and status quo bias. Journal of Economic perspectives, 5(1), 193-206.
• Kahneman, D., Lovallo, D., & Sibony, O. (2011). Before you make that big decision. Harvard business review, 89(6), 50-60.
• Thaler, R. and Sunstein, C. (2009) Nudge: Improving Decisions about Health, Wealth and Happiness, London: Penguin.

Topic 3 – Designing for Environmental Sustainability: Nudges, Choice Architecture & Behavioral Tools

Principles of choice architecture in the workplace, Defaults, salience, framing, and feedback, Social norms & peer comparisons for internal engagement, Ethical considerations: motivation vs manipulation; Behavioral tools applied to environmental sustainability; Nudges for energy conservation, waste reduction, and emissions

Recommender systems & AI-assisted green decision-making; Feedback loops in logistics, supply chain, and procurement.

Readings

• Sunstein, C. R. (2021). Nudging: A Very Short Guide. Journal of Consumer Policy, 44(3), 451–459. https://doi.org/10.1007/s10603-020-09423-1
• Ferraro, P. J., & Price, M. K. (2013). Using Non-Price Incentives to Influence Behavior: Evidence from a Large-Scale Field Experiment. Review of Economics and Statistics, 95(1), 64–73. https://doi.org/10.1162/REST_a_00344
• Allcott, H. (2011). Social Norms and Energy Conservation. Journal of Public Economics, 95(9–10), 1082–1095. https://doi.org/10.1016/j.jpubeco.2011.03.003
• Felfernig, A., Jeran, M., & Leitner, G. (2023). Recommender Systems for Sustainability: Overview and Research Issues. Frontiers in Big Data, 6, 1284511. https://doi.org/10.3389/fdata.2023.1284511

Topic 4 - Environmental Sustainability

Behavioral tools for energy, waste, and emissions, Feedback systems in logistics, production, and operations, Diagnosing and testing behavioral interventions (e.g., A/B testing), Industry-specific nudges and interventions

Readings

• Brekke, K. A., & Johansson-Stenman, O. (2008). The behavioural economics of climate change. Oxford Review of Economic Policy, 24(2), 280–297.
• Enste, D., & Potthoff, J. (2023). Behavioral economics in companies: Nudging green behavior. IW-Report No. 26/2023.
• Rosenkranz, S. et al. (2017). Using behavioral insights to make firms more energy efficient: A field experiment on the effects of improved communication. Energy Policy, 108, 184–193.
• Carrico, A. R., & Riemer, M. (2011). Motivating energy conservation in the workplace: An evaluation of the use of group-level feedback and peer education. Journal of Environmental Psychology, 31(1), 1–13.
• Zacher, H. et al. (2023). Employee green behavior as the core of environmentally sustainable organizations. Annual Review of Organizational Psychology and Organizational Behavior, 10(1), 465–494.
• Delmas, M. A., & Aragon-Correa, J. A. (2016). Field experiments in corporate sustainability research: Testing strategies for behavior change in markets and organizations. Organization & Environment, 29(4), 391–400.

Topics 5: Social sustainability

Organizational culture, identity, inclusion, Peer framing, ethical norms, and well-being

Employee engagement in sustainability behavior

Readings:

• Ajzen, I. (1991). The Theory of Planned Behavior. Organizational Behavior and Human Decision Processes.
• Hoffman, A. J., & Bazerman, M. H. (2007). Changing practice on sustainability: Understanding and overcoming the organizational and psychological barriers to action. In Organizations and the Sustainability Mosaic. Edward Elgar Publishing.
• Pinel, H. et al. (2025). Nudges in workplace environments—A systematic review and research agenda. Journal of Personnel Psychology, 24(3), 109–123.
• Yamane, T., & Kaneko, S. (2022). The Sustainable Development Goals as new business norms: A survey experiment on stakeholder preferences. Ecological Economics, 191, 107236.
• Rode, J. et al. (2021). How to encourage business professionals to adopt sustainable practices? Experimental evidence that the ‘business case’ discourse can backfire. Journal of Cleaner Production, 283, 124618.
• Lee, C. C. et al. (2023). Examining the impacts of ESG on employee retention: A study of generational differences. Journal of Business and Management, 29(1), 1–22.

Topic 6: Governance Sustainability

Framing compliance and risk, ESG reporting and disclosure, Board composition and long-term accountability

Readings:

• Naciti, V. (2019). Corporate governance and board of directors: The effect of a board composition on firm sustainability performance. Journal of Cleaner Production, 237, 117727.
• Ferrari, G. et al. (2022). Do board gender quotas matter? Selection, performance, and stock market effects. Management Science, 68(8), 5618–5643.
• Alkhawaja, A. et al. (2023). Board gender diversity, quotas, and ESG disclosure: Global evidence. International Review of Financial Analysis, 90, 102823.
• Sunstein, C. R. (2021). Nudging: A Very Short Guide. Journal of Consumer Policy, 44(3), 451–459.
• Thaler, R., & Sunstein, C. (2009). Nudge: Improving Decisions About Health, Wealth, and Happiness. Penguin.

Topic 7: Opportunistic Sustainability Communication: Greenwashing & Social-Washing
Greenwashing, social-washing, symbolic actions, reputational risk, ESG disclosure credibility, stakeholder trust, deceptive signaling, regulatory accountability

Readings:

• Forliano, C., Battisti, E., De Bernardi, P., & Kliestik, T. (2025). Mapping the greenwashing research landscape: a theoretical and field analysis. Review of Managerial Science, 1-50.
• Gatti, L., Grappi, S., & Romani, S. (2023). Research in the greenwashing field: concepts, theories, and future directions. Journal of Management & Governance. https://doi.org/10.1007/s10997-023-09686-5
• Schaltegger, S., & Hörisch, J. (2017). In search of the dominant raonale in sustainability management: legimacy-or profit-seeking?. Journal of Business Ethics, 145, 259-276
• Zhan, X., Lian, X., & Dai, S. (2025). Correcting or Concealing? The Impact of Digital Transformation on the Greenwashing Behavior of Heavily Polluting Enterprises. Sustainability, 17(1), 356.

 

Readings/Bibliography

Readings and Lecture Materials

For each topic, a list of core readings is provided in the syllabus. Additional readings and case materials may be assigned during the course and will be communicated by the instructor.

Lecture Notes

Lecture slides and notes will be made available on the IOL platform prior to each session. Please note that these materials may be revised or supplemented after the class based on in-class discussion.
While lecture notes provide a useful overview, they are not a substitute for the assigned readings. They often do not include the analytical depth or contextual detail covered in the core literature, which are essential for a comprehensive understanding of the course content.

Teaching methods

Teaching Approach

The course combines traditional lectures with guided discussions and interactive activities. Each session is designed to encourage active participation and critical thinking.

Students are expected to come prepared, having completed the required readings, and to contribute to in-class discussions through questions, reflections, and short group exercises. This interactive format aims to foster dialogue, reflection, and a deeper understanding of behavioral approaches to sustainability in organizational contexts.

Assessment methods

Assessment consists of two parts: a written multiple-choice test and an oral examination, both covering the entire course syllabus.

The assessment is designed to evaluate whether students have achieved the learning objectives of the course and, in particular:

• knowledge of the main concepts, models, and findings in behavioural economics and social preferences;

• the ability to understand and interpret economic and social phenomena using the tools of behavioural economics;

• the ability to apply theoretical concepts to topics such as cooperation, inequality, the care economy, and public policy;

• the ability to use appropriate disciplinary terminology and to discuss course topics critically and rigorously.

The written test is primarily intended to assess students' knowledge of the course content and their ability to apply theoretical concepts to simple examples and case studies.

The written test consists of 20 multiple-choice questions to be completed in 30 minutes. Questions are randomly drawn from a question bank prepared by the instructor and cover the entire course syllabus. Students must answer at least 12 questions correctly in order to be admitted to the oral examination.

The oral examination takes place on the same day, immediately after the written test has been graded. During the oral exam, students will be asked to answer three questions, randomly selected from a predefined pool of questions that will be made available during the course. The oral examination is designed to assess students' critical understanding of the course material, their ability to establish connections across different topics, and their capacity to discuss behavioural economics and public policy clearly, rigorously, and independently.

The final grade is based on the overall performance in both the written and oral examinations.

During the written examination, students are not permitted to consult books, notes, slides, course materials, online resources, or generative Artificial Intelligence tools. The examination is strictly individual. Any form of unauthorized communication or academic misconduct will result in exclusion from the examination.

The final evaluation will take into account the accuracy of the answers, the ability to apply concepts from behavioural economics to the interpretation of economic and social issues, clarity of expression, and the quality of argumentation demonstrated during the oral examination.

The maximum possible grade is 30 cum laude. Grades are awarded according to the following criteria:

• Below 18: Fail.

• 18–23: Sufficient knowledge of the main concepts and ability to describe the fundamental topics of the course.

• 24–27: Good knowledge of the course material, with the ability to apply concepts to simple problems and establish connections across topics.

• 28–30: Very good knowledge of the course material, strong analytical skills, clear exposition, and confident use of the appropriate disciplinary language.

• 30 cum laude: Outstanding performance demonstrating excellent mastery of the course content, the ability to critically integrate different topics, and to develop independent and rigorous arguments.

Grade rejection: Students may reject the grade obtained in the examination only once. To do so, they must send an email request to the instructor before the registration deadline for the next examination session. The instructor will acknowledge receipt of the request as soon as possible. Rejecting the grade requires the student to repeat both the written and the oral examinations.

Students with specific learning disorders (SLD), temporary or permanent disabilities, or other conditions requiring accommodations are encouraged to contact the University's dedicated support office (https://site.unibo.it/studenti-con-disabilita-e-dsa/it ) well in advance. Any necessary accommodations must be agreed with the instructor at least 15 days before the examination.

The use of generative Artificial Intelligence tools is strictly prohibited during both the written and oral examinations. Any unauthorized use constitutes a violation of academic integrity.

Teaching tools

Lecture slides, notes, and all required readings will be made available on the VIRTUALE platform: https://virtuale.unibo.it .
Students are expected to regularly consult the platform for updates and materials.

Office hours

See the website of Natalia Montinari