Economic Experiments and Environmental Policy

Posted: 8 Oct 2014

See all articles by Charles N. Noussair

Charles N. Noussair

Tilburg University

Daan van Soest

Tilburg University - CentER & Department of Economics

Date Written: November 2014


We summarize and review the literature on two types of economic experiments. First, we explore the consequences for environmental policies of the vast body of literature refuting the assumption that humans are concerned only with their own private welfare. We review the literature addressing whether government intervention is always necessary to protect the environment and whether it is always effective in doing so. Second, 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 on applications in the domains of water allocation and tradable permit systems.

Suggested Citation

Noussair, Charles N. and van Soest, Daan P., Economic Experiments and Environmental Policy (November 2014). Annual Review of Resource Economics, Vol. 6, Issue 1, pp. 319-337, 2014. Available at SSRN: or

Charles N. Noussair (Contact Author)

Tilburg University ( email )

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

Daan P. Van Soest

Tilburg University - CentER & Department of Economics ( email )

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

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