Parliamentary Secretary Mike Bernier summarizes British Columbia’s positive experience with its revenue-neutral carbon tax

The Behavioral Effect of Pigovian Regulation: Evidence from a Field Experiment

Posted on July 17th, 2017 by tagadmin

Market-­based regulation, and in particular Pigovian taxes/subsidies, have the potential to make consumers internalize socially harmful external effects associated with their choices. Recent behavioral literature, however, suggests that explicit financial penalties/rewards may undermine willingness to behave prosocially.

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