Prospect theory is a behavioral economic theory that explains how people make decisions when faced with uncertain outcomes or risks. It suggests that people are more likely to choose an option that they perceive as a “gain” over an option that they perceive as a “loss,” even if the expected value of the two options is the same.

In the context of choosing between a car and a bicycle, prospect theory suggests that people may be more likely to choose the car because it is perceived as a gain (a mode of transportation that is perceived as more convenient or luxurious) over the bicycle, which may be perceived as a loss (a mode of transportation that requires more physical effort or may be perceived as less convenient or comfortable).

The importance of psychology in explaining proenvironmental behavior cannot be overstated. Psychological factors play a critical role in shaping people’s attitudes, beliefs, and behaviors related to the environment. For example, people who are more environmentally conscious may be more likely to engage in proenvironmental behaviors such as recycling, using public transportation, or using a bicycle as a mode of transportation. On the other hand, people who are less environmentally conscious may be more likely to engage in behaviors that are harmful to the environment, such as driving a car or using disposable plastics. Understanding the psychological factors that influence proenvironmental behavior can help policymakers and environmental advocates develop effective strategies for promoting sustainable behaviors and practices.