Allcott, H., & Sunstein, C.Regulating Internalities

Recommended reading

Allcott, H., & Sunstein, C.

Release date: 

Februar 2015


Journal of Policy Analysis and Management

This paper offers a framework for regulating internalities. Using a simple economic model, we provide four principles for designing and evaluating behaviorally-motivated policy. We then outline rules for determining which contexts reliably reflect true preferences and discuss empirical strategies for measuring internalities. As a case study, we focus on energy efficiency policy, including Corporate Average Fuel Economy (CAFE) standards and appliance and lighting energy efficiency standards.

The publication can be found here.