The Role of Experiments for Policy Design

Research output: Chapter in Book/Report/Conference proceedingChapterAcademic


In this chapter, we review selected evidence to demonstrate the value of experiments for policy design with a focus on environmental policy and tax policy. Experiments can substantially improve ex-ante predictions about the outcomes of policy interventions, for example, by serving as “testbeds” to compare alternative market rules and mechanisms under tightly controlled conditions. Experiments also yield important insights into systematic deviations from strict rationality and into the heterogeneity of preferences among decision-makers that can form the basis for the (re-) design of policies. Besides describing various experimental approaches applied in the areas of environmental policy and tax policy, we also discuss further directions for successful collaborations between experimental economists and political decision-makers.

Original languageEnglish
Title of host publicationHandbook of Research Methods and Applications in Experimental Economics
EditorsArthur Schram, Aljaz Ule
Place of PublicationCheltenham
PublisherEdward Elgar Publishing
ISBN (Print)9781788110556
Publication statusPublished - 2019

Publication series

SeriesHandbooks of Research Methods and Applications Series

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