NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Regulating Internalities

Hunt Allcott, Cass R. Sunstein

NBER Working Paper No. 21187
Issued in May 2015
NBER Program(s):Environment and Energy Economics

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.

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Document Object Identifier (DOI): 10.3386/w21187

Published: Hunt Allcott & Cass R. Sunstein, 2015. "REGULATING INTERNALITIES," Journal of Policy Analysis and Management, vol 34(3), pages 698-705. citation courtesy of

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