Incorporating Environmental Pressure in Discrete Choice Models: A Behavioural Approach for Sustainable Transport Policy in Australia

While discrete choice models have evolved to include behavioural and psychological dimensions, the role of environmental pressure—both perceived and social—remains underexplored. This study addresses a critical research gap by examining how environmental awareness and perceived ecological responsibility influence individual decision-making in choice experiments. Using an enhanced discrete choice framework that incorporates latent variables related to environmental social norms, we propose a novel estimation approach that captures the combined effect of ecological concern and peer expectations on consumer preferences. The formulation draws upon extensions of the Opinion-Responsive Multinomial Logit Structure (ORMS), enabling the quantification of environmentally driven utility shifts. In the modern era of climate urgency and sustainability-driven behaviour, recognising and modelling environmental pressure within discrete choice is crucial for accurate forecasting and effective policy design.

Discrete Choice Models, Environmental Pressure, Social Norms, Sustainable Behaviour, Australia, Climate Change Awareness, Peer Influence, Behavioural Modelling, Opinion-Responsive Models, ORMS, Eco-friendly Decision-Making, Transport Policy, Latent Variables, Green Preferences, Environmental Social Influence

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