We analyze how habit formation affects optimal environmental taxation, when consumption of a habitual good causes a negative external effect on the environment. In a simple two-period model, we show that optimal taxation is still Pigouvian, where tax rates equal marginal damage in each period....

In our representative sample of Swedish mutual fund investors, those who aresustainability motivated perceive investment choices more difficult than otherinvestors. Of those who are sustainability motivated, 38 percent have neveractively invested in a sustainable fund. Preferences for...

In this paper we develop a theoretical model to clarify the underlying mechanisms that drive individual decision making and responses to behavioral interventions, such as nudges. The contribution of the paper is threefold: First, the model provides a theoretical framework that comprehensively...

This paper reports from a simple natural field experiment based on an eco-nomics exam. Part of the exam consisted of 30 multiple choice questions, where the students obtained 1 point per correct answer while 1 point was deducted for each in-correct answer. We find no significant gender...

We study how gender, birth-order and number of siblings are related to stated time and risk preferences and real-life decisions. We use survey data covering about 2,300 individuals and find that time and risk preferences are significantly correlated among women but not among men. We also find...