Economic Experiments and Environmental Policy: A Review

CentER Discussion Paper Series No. 2014-001

28 Pages Posted: 7 Jan 2014

See all articles by Charles N. Noussair

Charles N. Noussair

Tilburg University

Daan van Soest

Tilburg University - CentER & Department of Economics

Date Written: January 7, 2014

Abstract

We summarize and review the literature on two types of economic experiments. First we discuss the use of experimental laboratories to testbed market solutions to issues in environmental policy. We concentrate on experiments with one and two-sided markets, and applications in the domain of water allocation, food safety, and tradable permit systems. Second, we explore the consequences for environmental policies of the vast body of literature refuting the assumption that humans are only concerned with their own private welfare. We review the literature addressing whether government intervention is always necessary to protect the environment, and also whether it is always effective in doing so.

Keywords: Survey, experiment, environment, social dilemma

JEL Classification: C92, Q20, Q30, Q50

Suggested Citation

Noussair, Charles N. and van Soest, Daan P., Economic Experiments and Environmental Policy: A Review (January 7, 2014). CentER Discussion Paper Series No. 2014-001. Available at SSRN: https://ssrn.com/abstract=2375586 or http://dx.doi.org/10.2139/ssrn.2375586

Charles N. Noussair (Contact Author)

Tilburg University ( email )

P.O. Box 90153
Tilburg, DC Noord-Brabant 5000 LE
Netherlands

Daan P. Van Soest

Tilburg University - CentER & Department of Economics ( email )

P.O. Box 90153
5000 LE Tilburg
Netherlands
+31 13 466 2072 (Phone)

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