NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Energy Policy with Externalities and Internalities

Hunt Allcott, Sendhil Mullainathan, Dmitry Taubinsky

NBER Working Paper No. 17977
Issued in April 2012

---- Acknowledgements -----

This paper previously circulated as "Externalities, Internalities, and the Targeting of Energy Policy." We thank Ryan Bubb, Meghan Busse, Lucas Davis, Liran Einav, Larry Goulder, Michael Greenstone, Garth Heutel, Ryan Kellogg, Ted O'Donoghue, Jim Sallee, Josh Schwartzstein, Glen Weyl, Nathan Wozny, two anonymous referees, and seminar participants at the 2011 ASSA meetings, Duke, the Environmental Defense Fund, Harvard, MIT, NBER, New York University, the Stanford Institute for Theoretical Economics, UC Santa Barbara, Universidad de los Andes, and Yale for feedback and helpful conversations. We are grateful to the Sloan Foundation for financial support of our research on the economics of energy efficiency. MATLAB code for replicating the analysis is available from Hunt Allcott's website. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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