Firms and governments often use moral suasion and economic incentives to influence intrinsic and extrinsic motivations … quickly after repeated interventions. Economic incentives produced larger and persistent effects, which induced habit … formation after the final interventions. While each policy produces substantial welfare gains, economic incentives provide …

perverse incentives to distort the attribute upon which compliance depends. We develop a theoretical framework to predict how …

create asymmetric incentives because increases in externalities remain unpriced. This paper examines implications of such … asymmetric subsidy incentives by using a regression discontinuity design in California's electricity rebate program that provided … inland areas. Income and climate conditions significantly drive the heterogeneity. Asymmetric subsidy structures weaken …