Paternalism and Energy Efficiency: An Overview
Working Paper 20363
DOI 10.3386/w20363
Issue Date
Revision Date
This review paper provides an overview of the application of behavioral public economics to energy efficiency. I document policymakers' arguments for “paternalistic” energy efficiency policies, formalize with a simple model of misoptimizing consumers, review and critique empirical evidence, and suggest future research directions. While empirical results suggest that policies to address imperfect information and internalities may increase welfare in some cases, some existing policies may be mistargeted or miscalibrated.
Published Versions
Hunt Allcott, 2016. "Paternalism and Energy Efficiency: An Overview," Annual Review of Economics, vol 8(1).