Understanding Mechanisms Underlying Contrasting Environmental Activism Levels via a Model of Individual Contributions to Public Goods

Climate change poses a significant global challenge in the 21st century, influencing socio-economic and technological processes. Addressing this challenge requires behavioural shifts from both consumers and firms. While environmental economists have traditionally emphasised the producer’s role, there is a notable gap in understanding consumer behaviour. The present study aims to introduce a theoretical framework for understanding and promoting individuals’ pro-environmental behaviour tipping points. To do so, the study employs game-theoretic analysis and draws inspiration from previous literature on threshold public goods games and models of political changes and processes. These frameworks are employed to unveil the underlying mechanisms driving different levels of environmental activism. Overall, the benchmark setup in the model reveals behavioural patterns observed in cooperation regarding public goods. The model yields both pessimistic and optimistic equilibria: one in which the production of public goods is not achieved, and another where production is potentially attainable. Moreover, the study juxtaposes the findings with empirical evidence and offers implications to guide policymakers in crafting effective strategies to tackle environmental challenges.