Adverse Selection as a Policy Instrument: Unraveling Climate Change

We are grateful to Thom Covert, Carolyn Fischer, Meredith Fowlie, Michael Greenstone, Suzi Kerr, Gib Metcalf, Frikk Nesje, Mark Omara, Mar Reguant, James Sallee, Florian Scheuer, Joseph Shapiro, Andrei Shleifer, Jim Stock, Allison Stashko, Bob Topel, Reed Walker, Siyu Zhang, and seminar participants at LMU Munich, UT Austin, Rice, the Public Economics meetings of the 2022 NBER Summer Institute, Indiana University, EARE 2022, University of St. Gallen, IMF, World Bank, ETH Zurich, HEC Lausanne, Tufts, Universität Bern, the Environmental Defense Fund, UC San Diego, the Midwest EnergyFest, Yale, Harvard, the Utah Winter Business Economics Conference, UC Santa Barbara, UC Berkeley, and the University of Chicago for helpful comments. Iván Higuera-Mendieta provided excellent research assistance. Cicala gratefully acknowledges funding from the 1896 Energy and Climate Fund at the University of Chicago, and along with Olsen thanks the University of Zurich for hospitality. All errors remain our own. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

• July 21, 2022