Frontiers of Environmental Economics
Show Less

Frontiers of Environmental Economics

Edited by Henk Folmer, H. Landis Gabel, Shelby Gerking and Adam Rose

Top European and American scholars contribute to this cutting-edge volume on little-researched areas of environmental and resource economics. Topics include spatial economics, poverty and development, experimental economics, large-scale risk and its management, organizational economics, technological innovation and diffusion and many more.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 5: To whisper in the ears of princes: laboratory economic experiments and environmental policy

Ronald G. Cummings, Michael McKee and Laura Taylor


Ronald G. Cummings, Michael McKee and Laura O. Taylor 1 INTRODUCTION Over the last decade or so there have been relatively modest efforts by environmental economists to apply the tools of experimental economics to analyses of contemporary environmental policy issues. Motivation for these efforts derives from at least two considerations. First, it is often the case that data required for assessments of policy initiatives are unavailable and field trials of an initiative are not feasible.1 In such instances one may appeal to experimental economics. When properly designed and implemented, laboratory experiments provide a powerful, low-cost mechanism for the generation of data that can be useful for policy evaluation. A second compelling motivation for the use of laboratory experiments is the potential ‘educational’ benefit that can result from the use of experiments to illustrate the effects of policy initiatives – data from experiments can be used to demonstrate the consequences of policy alternatives to decision makers in ways that theory cannot. Many policy makers are not trained in economic theory and empirical arguments often carry more weight than the theoretical predictions alone. Absent field data, the only alternative for empirical demonstrations is laboratory experiments. Experiments may be viewed as a means of improving the decision-making process of policy makers by providing information that would be otherwise unavailable or by furthering the evaluation of decision criteria such as benefit measurement. As noted above, a relatively modest number of environmental economists presently include experimental methods as a part of their arsenal of...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.