Economic Experiments and Environmental Policy: A Review
CentER Discussion Paper Series No. 2014-001
28 Pages Posted: 7 Jan 2014
Date Written: January 7, 2014
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: Suggested Citation