How to choose environmental policy instruments within a clearly defined scope of the market
mechanism and government intervention will profoundly affect the policy effectiveness …

This chapter surveys work in behavioral public economics, emphasizing the normative
implications of non-standard decision making for the design of welfare-improving and/or …

A common objection to “sin taxes”—corrective taxes on goods that are thought to be
overconsumed, such as cigarettes, alcohol, and sugary drinks—is that they often fall …

Many analysts of the energy industry have long believed that energy efficiency offers an
enormous “win-win” opportunity: through aggressive energy conservation policies, we can …

This article discusses the use of green nudges—behavioral interventions aimed at reducing
negative externalities—as an environmental policy instrument. We present a new framework …

We analyze optimal policy when consumers of energy-using durables undervalue energy
costs relative to their private optima. First, there is an Internality Dividend from Externality …

This paper argues that it will often be rational for consumers to pay limited attention to
energy efficiency when choosing among energy-consuming durable goods like automobiles …

It is often asserted that consumers are poorly informed about and inattentive to fuel
economy, causing them to buy low-fuel economy vehicles despite their own best interest …

We study attribute-based regulations, under which regulatory compliance of a firm, product,
or individual depends on a secondary attribute that is not the intended target of the …

Debate about the appropriate design of energy policy hinges critically on whether
consumers might undervalue energy efficiency, due to myopia or some other manifestation …