NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

The Lightbulb Paradox: Evidence from Two Randomized Experiments

Hunt Allcott, Dmitry Taubinsky

NBER Working Paper No. 19713
Issued in December 2013, Revised in August 2014
NBER Program(s):Environment and Energy Economics, Public Economics

Imperfect information and inattention to energy costs are important potential justifications for energy efficiency standards and subsidies. We evaluate these policies in the lightbulb market using a theoretical model and two randomized experiments. We derive welfare effects as functions of reduced-form sufficient statistics capturing economic and psychological parameters, which we estimate using a novel within-subject information disclosure experiment. In the context of the model, the main results suggest that moderate subsidies for energy efficient lightbulbs may increase welfare, but informational and attentional biases alone do not justify a ban on incandescent lightbulbs.

download in pdf format
   (1245 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w19713

Published: Evaluating Behaviorally Motivated Policy: Experimental Evidence from the Lightbulb Market Hunt Allcott Dmitry Taubinsky AMERICAN ECONOMIC REVIEW VOL. 105, NO. 8, AUGUST 2015 (pp. 2501-38)

Users who downloaded this paper also downloaded* these:
Davis w19736 The Economic Cost of Global Fuel Subsidies
Allcott w20363 Paternalism and Energy Efficiency: An Overview
Sallee w19545 Rational Inattention and Energy Efficiency
Houde w20019 How Consumers Respond to Environmental Certification and the Value of Energy Information
Allcott, Mullainathan, and Taubinsky w17977 Energy Policy with Externalities and Internalities
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us