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.
Allcott, H., & Sunstein, C.Regulating Internalities
Author(s):
Allcott, H., & Sunstein, C.
Release date:
Februar 2015
Publication:
Journal of Policy Analysis and Management