IDEAS home Printed from https://ideas.repec.org/p/hhs/gunwpe/0841.html

How Much Liberty Should We Have? Citizens versus Experts on Regulating Externalities and Internalities

Author

Listed:
  • Carlsson, Fredrik

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Johansson-Stenman, Olof

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Kataria, Mitesh

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

Based on a tailor-made survey, we find that experts – academics and civil servants – are much more willing than citizens in Sweden to accept liberty-reducing regulations. Moreover, both citizens and experts are more supportive of regulating negative internalities (in terms of health) than negative externalities (in terms of climate change). While less liberty-reducing policy instruments receive more support, around 20 percent of citizens and experts support very intrusive measures such as non-transferable individual quotas for air travel and unhealthy foods. Both experts and citizens prefer encouraging to discouraging information provision, while experts are more positive than citizens to tax instruments.

Suggested Citation

  • Carlsson, Fredrik & Johansson-Stenman, Olof & Kataria, Mitesh, 2024. "How Much Liberty Should We Have? Citizens versus Experts on Regulating Externalities and Internalities," Working Papers in Economics 841, University of Gothenburg, Department of Economics.
  • Handle: RePEc:hhs:gunwpe:0841
    as

    Download full text from publisher

    File URL: https://gupea.ub.gu.se/handle/2077/79569
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fredrik Carlsson & Christina Gravert & Olof Johansson-Stenman & Verena Kurz, 2021. "The Use of Green Nudges as an Environmental Policy Instrument," Review of Environmental Economics and Policy, University of Chicago Press, vol. 15(2), pages 216-237.
    2. Lucia A. Reisch & Cass R. Sunstein, 2016. "Do Europeans like nudges?," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 11(4), pages 310-325, July.
    3. Stefano DellaVigna & Elizabeth Linos, 2022. "RCTs to Scale: Comprehensive Evidence From Two Nudge Units," Econometrica, Econometric Society, vol. 90(1), pages 81-116, January.
    4. Fredrik Carlsson & Dinky Daruvala & Henrik Jaldell, 2012. "Do administrators have the same priorities for risk reductions as the general public?," Journal of Risk and Uncertainty, Springer, vol. 45(1), pages 79-95, August.
    5. Paola Sapienza & Luigi Zingales, 2013. "Economic Experts versus Average Americans," American Economic Review, American Economic Association, vol. 103(3), pages 636-642, May.
    6. D. Wade Hands, 2021. "Libertarian Paternalism: Making Rational Fools," Review of Behavioral Economics, now publishers, vol. 8(3-4), pages 305-326, December.
    7. Sandro Ambuehl & B. Douglas Bernheim & Axel Ockenfels, 2021. "What Motivates Paternalism? An Experimental Study," American Economic Review, American Economic Association, vol. 111(3), pages 787-830, March.
    8. Jung, Janice Y. & Mellers, Barbara A., 2016. "American attitudes toward nudges," Judgment and Decision Making, Cambridge University Press, vol. 11(1), pages 62-74, January.
    9. Nicholas Stern, 2022. "A Time for Action on Climate Change and a Time for Change in Economics," The Economic Journal, Royal Economic Society, vol. 132(644), pages 1259-1289.
    10. Fredrik Carlsson & Mitesh Kataria & Elina Lampi, 2011. "Do EPA Administrators Recommend Environmental Policies That Citizens Want?," Land Economics, University of Wisconsin Press, vol. 87(1), pages 60-74.
    11. Cass Sunstein, 2014. "Nudging: A Very Short Guide," Journal of Consumer Policy, Springer, vol. 37(4), pages 583-588, December.
    12. B. Douglas Bernheim & Antonio Rangel, 2009. "Beyond Revealed Preference: Choice-Theoretic Foundations for Behavioral Welfare Economics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(1), pages 51-104.
    13. Janice Y. Jung & Barbara A. Mellers, 2016. "American attitudes toward nudges," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 11(1), pages 62-74, January.
    14. Cass R. Sunstein & Lucia A. Reisch & Julius Rauber, 2018. "A worldwide consensus on nudging? Not quite, but almost," Regulation & Governance, John Wiley & Sons, vol. 12(1), pages 3-22, March.
    15. Bernheim, B. Douglas, 2016. "The Good, the Bad, and the Ugly: A Unified Approach to Behavioral Welfare Economics1," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 7(1), pages 12-68, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luca Congiu & Ivan Moscati, 2022. "A review of nudges: Definitions, justifications, effectiveness," Journal of Economic Surveys, Wiley Blackwell, vol. 36(1), pages 188-213, February.
    2. Björn Bartling & Krishna Srinivasan, 2025. "Paternalistic Interventions: Determinants of Demand and Supply," CESifo Working Paper Series 11886, CESifo.
    3. Björn Bartling & Krishna Srinivasan, 2025. "Paternalistic interventions: determinants of demand and supply," ECON - Working Papers 469, Department of Economics - University of Zurich.
    4. Bruns, Hendrik & Perino, Grischa, 2023. "The role of autonomy and reactance for nudging — Experimentally comparing defaults to recommendations and mandates," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 106(C).
    5. Giorgos Meramveliotakis & Manolis Manioudis, 2024. "Default Nudge and Street Lightning Conservation: Towards a Policy Proposal for the Current Energy Crisis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 9228-9237, June.
    6. Björn Bartling & Alexander W. Cappelen & Henning Hermes & Marit Skivenes & Bertil Tungodden, 2023. "Free to fail? Paternalistic preferences in the United States," ECON - Working Papers 436, Department of Economics - University of Zurich, revised May 2025.
    7. Alempaki, Despoina & Isoni, Andrea & Read, Daniel, 2023. "Tainted nudge," Organizational Behavior and Human Decision Processes, Elsevier, vol. 176(C).
    8. Reisch, Lucia A. & Sunstein, Cass R. & Gwozdz, Wencke, 2017. "Viewpoint: Beyond carrots and sticks: Europeans support health nudges," Food Policy, Elsevier, vol. 69(C), pages 1-10.
    9. Haoyang Yan & J. Frank Yates, 2019. "Improving acceptability of nudges: Learning from attitudes towards opt-in and opt-out policies," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 14(1), pages 26-39, January.
    10. Fasolo, Barbara & Heard, Claire & Scopelliti, Irene, 2024. "Mitigating cognitive bias to improve organizational decisions: an integrative review, framework, and research agenda," LSE Research Online Documents on Economics 125404, London School of Economics and Political Science, LSE Library.
    11. Ouvrard, Benjamin & Abildtrup, Jens & Stenger, Anne, 2020. "Nudging Acceptability for Wood Ash Recycling in Forests: A Choice Experiment," Ecological Economics, Elsevier, vol. 177(C).
    12. Cadario, Romain & Chandon, Pierre, 2019. "Viewpoint: Effectiveness or consumer acceptance? Tradeoffs in selecting healthy eating nudges," Food Policy, Elsevier, vol. 85(C), pages 1-6.
    13. Paul M. Lohmann & Elisabeth Gsottbauer & Christina Gravert & Lucia A. Reisch, 2025. "Nudging, Fast and Slow: Experimental Evidence from Food Choices under Time Pressure," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 88(10), pages 2595-2627, October.
    14. Clareta Treger, 2023. "When do people accept government paternalism? Theory and experimental evidence," Regulation & Governance, John Wiley & Sons, vol. 17(1), pages 195-214, January.
    15. Rafaï, Ismaël & Ribaillier, Arthur & Jullien, Dorian, 2025. "The impact on nudge acceptability judgements of framing and consultation of the targeted population," Behavioural Public Policy, Cambridge University Press, vol. 9(1), pages 176-191, January.
    16. Nobel Prize Committee, 2017. "Richard H. Thaler: Integrating Economics with Psychology," Nobel Prize in Economics documents 2017-1, Nobel Prize Committee.
    17. Linda Thunström, 2019. "Welfare effects of nudges: The emotional tax of calorie menu labeling," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 14(1), pages 11-25, January.
    18. Lorko, Matej & Miklánek, Tomáš & Servátka, Maroš, 2025. "Why do some nudges work and others not?," Journal of Economic Behavior & Organization, Elsevier, vol. 235(C).
    19. Leonhard Lades & Federica Nova, 2022. "Ethical Considerations when using Behavioural Insights to Reduce Peoples Meat Consumption," Working Papers 202209, Geary Institute, University College Dublin.
    20. Meier, Johanna & Andor, Mark A. & Doebbe, Friederike C. & Haddaway, Neal R. & Reisch, Lucia A., 2022. "Review: Do green defaults reduce meat consumption?," Food Policy, Elsevier, vol. 110(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:gunwpe:0841. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jessica Oscarsson (email available below). General contact details of provider: https://edirc.repec.org/data/naiguse.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.