Most OECD countries have implemented policies to reduce the environmental impacts from household activities. Some of these aim to influence household decision-making directly by encouraging energy conservation or waste recycling, for example. Others influence the options open to consumers in the market by imposing standards so that more environmentally benign goods are available, or by using taxes or fees to increase the relative prices of products with greater negative environmental impacts. Some of these policies have resulted in limited changes in behaviour. Still, many of the environmental impacts resulting from household decisions are expected to intensify over the next two decades (see accompanying article in this issue). Practical experience and analysis is showing that many environmental problems will be difficult to resolve without addressing diffuse sources of pollution, including household consumption. OECD governments will need to reinforce their policies to help households make day-to-day and major investment decisions at a lower cost to the environment.
