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exhibit present bias, Heutel (2015) has shown that optimal policies targeting investments in the efficiency state of … present bias. We generalize Heutel’s theoretical model by defining a larger technology set. This allows us to represent the … bias effect on investment and heating decisions, emissions, policies, and deadweight loss. We show that as long as social …
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This study calculates efficient taxes on fuel and road use designed to combat driving related externalities. The study shows that the efficient road user charge on fuel is below the marginal mileage-related damage to prevent tax avoidance due to an excessive economic driving-style. The current...
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This study calculates efficient taxes on gasoline and road use designed to combat driving related externalities when motorists avoid taxes due to an excessive economic driving-style. The efficient tax on gasoline is reduced below the Pigouvian rate due to such avoidance. The current US tax rate...
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