market failure, where even consumers who fully "internalize the externality" overconsume externality-generating goods. At the … same time, socially responsible consumers change the relative effectiveness of taxes, caps, and other policies in lowering … the externality. Second, since consumer beliefs about and preferences over dampening play a crucial role in our framework …

optimal regulation in each regime and shows that, in the presence of market power in the gas market, taxes rather than permits …

This paper addresses the question whether taxes on unhealthy food are suitable for internalizing intergenerational …

, campaigns will have less effects for such consumers. -- Voluntary contributions ; public goods ; responsibility ; altruism …

externality. In the special case of rational expectations, each consumer accepts full responsibility for his contribution to the … externality. A first-best optimum is then achieved by a form of Pigouvian pricing, assuming unconstrained income taxes …/transfers. Otherwise, Pigouvian pricing is second-best, unless individuals disclaim all responsibility for the externality and utility has …