[1] Islam, Q.T., Kabir, M.N., & Ali, K.S. (2024). Neuroeconomic Insights Into Consumer Behavior Towards Circular Economy Practices. In E. Cepni (Ed.), Chaos, Complexity, and Sustainability in Management (pp. 185-210).
[2] Ghenţa, M., & Matei, A. (2018). Delving into Stakeholders’ Perceptions of the Efficient Transition to the Circular Economy. Broad Research in Artificial Intelligence and Neuroscience.
[3]Alvino L, Pavone L, Abhishta A and Robben H (2020) Picking Your Brains: Where and How Neuroscience Tools Can Enhance Marketing Research
The role of neuroscience in promoting circular production and consumption models
Understanding the functioning of the human brain and decision-making processes can facilitate circular public policy and behaviour by reducing as much as possible the misjudgements caused by bias, for example through nudging techniques


Neuroscience and behavioral models for the circular economy
Over time, neuroscience has provided an increasing contribution of knowledge about the functioning of the human brain. Because of their interdisciplinary nature, using methodologies from, for example, economics, engineering, information technology, archaeology, psychology and sociology, neuroscience has also explored the ways in which people make decisions, learn and change their behaviour. Despite the complexity of the human being and the unavoidable difference between the various individuals, among the many possibilities to understand these mechanisms can also facilitate the adoption of practices related to the paradigm of the circular economy: the model based on decoupling the economic and social development of enterprises and territories from the exploitation of exhaustible natural resources.
Cognitive biases and their impact on consumption decisions
Human decisions are often influenced by bias, which are misjudgements that can affect our emotional state and the way we behave. In fact, the bias are nothing more than a quick shortcut used by our brain to save energy, allowing us to interpret reality quickly and efficiently. In some cases, however, bias leads to misjudgement. When a heuristic process leads to an imprecision or an error of assessment, we are faced with a cognitive bias, such as the bias of the status quo that tends to favor the maintenance of existing habits.


Neuroeconomics: what it is, its purpose and how it facilitates the adoption of circular economy
Neuroeconomics - a combination of neuroscience and economics - analyses the mental processes that accompany personal choices. This branch is born from the observation that economic agents do not always behave according to the model of rationality which underlies the classical economy. This finding, explored by behavioral economics, aims to explain the heterogeneity of behaviors observed in situations where economic science instead predicts a homogeneity in the way of behaving.
Neuroeconomics is therefore based on the study of the brain, which is a highly plastic organ, meaning that it can adapt and reorganize itself in response to new experiences and information. This is crucial for learning new sustainable behaviour. Educational initiatives using neuroscience-based techniques such as positive reinforcement and social learning can facilitate the adoption of virtuous practices including the circular economy. Educational programmes that show sustainable behaviour patterns can also positively influence the habits of participants.
Using Nudge Theory to facilitate behavioral change
There is therefore in the neuroeconomics a deep study of how the use of nudging techniques can influence people’s decisions and behaviors positively through small suggestions, positive supports or indirect aids, called nudge, without constraints or limitations on freedom of choice.
This theory does not intend to impose or define better choices than others, but to empower each person to create an environment in which decision is easier and more functional.Nudging is fundamental to understanding and improving human behavior in decision-making contexts, and helps make more informed and rational choices in complex and innovative areas. In this context, those relating to the design of products and services that encourage reuse and recycling through visual signs and incentives are practical examples of this approach1.
Affective neuroscience and business examples: how emotions can promote the circular economy
Emotions play a fundamental role in guiding human behaviour. Affective neuroscience - which studies how emotions affect the brain and behavior - can provide valuable insights, for example on how motivating people to participate actively in the new paradigm of the circular economy. Campaigns that evoke positive emotions related to the well-being of the community or the regeneration of nature can increase consumer engagement and participation, as well as awareness of the goodness of choices respectful for the environment and people.
The integration of neuroscience into strategies related to the circular economy has applications in many sectors. Companies can use the knowledge of neuroscience to design products and services that facilitate sustainable, circular behaviour such as intuitive and easily recyclable packaging design, the introduction of product refund systems that are simple and rewarding for consumers2.
What is Neuromarketing: examples and successful Business Cases
Through communication, that leverages emotional storytelling and impact visualizations, marketing strategies using neuroscience principles can increase awareness and motivation to buy circular products. Neuromarketing uses neuroscientific techniques to analyse brain reactions to different marketing stimuli. This approach can help companies understand which elements of an advertising campaign are most effective in promoting circular products.
The role of Eye-Tracking and functional magnetic resonance imaging (fMRI) in Neuromarketing
Techniques like eye-tracking and functional magnetic resonance imaging (fMRI) can also reveal which images, words and sounds are most likely to attract attention and generate positive interest in consumers. Eye-tracking, through the use of a specific device (eye-tracker), allows the recording and analysis of the ocular behavior during exposure to a visual stimulus, that is the movement, dilation and contraction of the pupil. This methodology is particularly useful in neuromarketing as it allows to understand how consumers interact visually with products and advertising, helping companies design more effective marketing materials.
fMRI is used in neuromarketing to understand how a person’s brain responds to various marketing stimuli including advertising, product packaging and branding messages. In addition, fMRI provides insight into how visual and emotional stimuli influence consumers' purchasing decisions and preferences.
Using eye-tracking and fMRI, companies can design products that are not only consistent with the principles of the circular economy, but also meet aesthetic and functional preferences of costumers. This may include the creation of products with recycled materials that appear more attractive and, as well, communicate more added value than “traditional” ones.
Implications for public policy making
Neuroscientific studies could contribute to a change in public policy by providing a deeper understanding of human behaviour, decision-making processes and social dynamics. Behavioural neuroscience can provide insight into brain mechanisms, allowing more effective interventions to be designed based on how people are likely to think and act. Behavioural economics shows how emotions play a crucial role in economic decisions, potentially stimulating the creation of policies that support the transition to a circular economy more effectively than designing simple economic incentives.
Another particularly important aspect is linked to the orientation of public policy communication strategies towards virtuous behaviour. By better understanding the mechanisms by which the brain processes information and responds to messages, public institutions could develop communication campaigns aimed at motivating people to participate in public health programmes, Environmental sustainability and application of different consumption patterns based, for example, on re-use and repair of products.
Behavioral Neuroscience: Nudging Theory in the formulation of public policies
The nudging theory is a practical application of behavioral neuroscience that has gained popularity in public policy formulation. This theory suggests that small changes in the decision-making context can significantly influence people’s behavior. For example, changing the food arrangement in a canteen to make healthy options more visible and accessible can lead to healthier food choices without direct restrictions.
Neuroscience can also inform educational policies, helping to develop teaching methods that respond better to the real functioning of the human brain. In particular, understanding how the brain learns and remembers information can broaden teaching methodologies by complementing existing approaches based on spatially distributed learning and positive reinforcement.
Integrating neuroscience into public policy making can therefore create more effective, targeted and scientifically understood interventions in human behaviour. An approach that not only improves its effectiveness, but also promotes a more intelligent and responsible management of public resources3.
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