G2TT
来源类型Discussion paper
规范类型论文
来源IDDP12558
DP12558 Environmental externalities and free-riding in the household
Seema Jayachandran; Kelsey Jack
发表日期2018-01-03
出版年2018
语种英语
摘要Water use and electricity use, which generate negative environmental externalities, are susceptible to a second externality problem: with household-level billing, each person enjoys private benefits of consumption but shares the cost with other household members. If individual usage is imperfectly observed (as is typical for water and electricity) and family members are imperfectly altruistic toward one another, households overconsume even from their own perspective. We develop this argument and test its prediction that intrahousehold free-riding dampens price sensitivity. We do so in the context of water use in urban Zambia by combining billing records, randomized price variation, and a lab-experimental measure of intrahousehold altruism. We find that more altruistic households are considerably more price sensitive than are less altruistic households. Our results imply that the socially optimal price needs to be set to correct both the environmental externality and also the intrahousehold externality.
主题Development Economics ; Public Economics
关键词Environmental externalities Water use Pigouvian pricing Moral hazard Intrahousehold decision-making
URLhttps://cepr.org/publications/dp12558
来源智库Centre for Economic Policy Research (United Kingdom)
资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/541369
推荐引用方式
GB/T 7714
Seema Jayachandran,Kelsey Jack. DP12558 Environmental externalities and free-riding in the household. 2018.
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