Pigovian regulation provides monetary penalties/rewards to incentivize prosocial behavior, and may thereby trigger behavioral effects beyond a more standard response associated with a change in relative prices. This paper quantifies the magnitude of these behavioral effects using data from an...

Pigovian regulation provides monetary penalties/rewards to incentivize prosocial behavior, and may thereby trigger behavioral effects beyond a more standard response associated with a change in relative prices. This paper quantifies the magnitude of these behavioral effects using data from an...

Bonus-malus taxes appear to have been successful in encouraging people to change to less polluting travel options in France (e.g. the tax on large and small engined cars). We hypothesize that they have three possible effects on consumer behaviour. The positive effects are: (1) a price effect...