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Vol. 9, No. 1 Hot Topics in Energy and Environmental Innovation in the 111th Congress May 2009
MESSAGE FROM THE CHAIR: latest book, Nudge: Improving Decisions About
INFORMATION AS INNOVATION Health, Wealth, and Happiness . The book, which
Sunstein co-authored with Richard Thaler, argues that
Irma S. Russell consumers will alter their buying habits if they have the
information necessary to understand the impact of their
A story in the New York Times Feb. 26 edition choices. Implementation of Sunstein’s vision of
reminded me of a simple fact: one of the most powerful disclosure requirements that provide relevant
forces for innovation is information. InMr. Whipple information about products and life style choices could
Left It Out: Soft Is Rough on Forests (http://www. have dramatic impact on both industry and consumers.
/2009/02/26/science/earth/26charmin. His vision of choice architecture suggests that
html), Leslie Kaufman explains that American’s love of “nudging” consumers toward healthy and green choices
soft toilet paper “uses millions of trees, because could make a real difference in consumer-driven
recycled paper does not have the same feel.” You demand. Sunstein’s writing explains in memorable
might know this from common sense: soft toilet paper ways the fact that humans acting and interacting in
comes from trees rather than recycled paper. reality do not function in ways attributed to the
Nevertheless, it is a simple fact I had never thought economic rational actor in economi
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