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Regulating Internalities

Hunt Allcott () and Cass Sunstein

No 21187, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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.

JEL-codes: D03 D04 D10 D18 D61 D83 H21 K0 K20 L51 L94 Q48 (search for similar items in EconPapers)
Date: 2015-05
New Economics Papers: this item is included in nep-ene
Note: EEE
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Published as Hunt Allcott & Cass R. Sunstein, 2015. "REGULATING INTERNALITIES," Journal of Policy Analysis and Management, vol 34(3), pages 698-705.

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