Balancing Monetary and Social Incentives in Green Credit Program for Sustainable Behaviors

In today’s world, achieving Sustainable Development Goals (SDGs) is a top priority, necessitating environmentally responsible actions from all stakeholders. India’s “Mission LiFE” initiative, introduced by Prime Minister Narendra Modi at the 2021 UN Climate Change Conference, emphasizes individual contributions to combat climate change. To further this initiative, Finance Minister Nirmala Sitharaman has allocated ₹35,000 crores in the 2023 Union Budget for the “Green Credit Programme” (GCP). This program encourages eco-friendly actions by offering “green credits” for activities like tree planting, water conservation, waste management, and more, which can be traded in a proposed domestic market platform.

However, the success of the GCP hinges on its implementation. Concerns about superficial activities, gaming the system, and ‘greenwashing’ must be addressed. Studies suggest that non-monetary incentives can be more effective in driving long-term behavior change. Leveraging social norms is crucial, as individuals tend to conform to group standards. Mission Life aims to create a network of ‘Pro-Planet People’ who promote eco-friendly lifestyles through social networks.

Re-reported from the article originally published in The Indian Times