Sunstein, CassAllcott, Hunt2015-06-042015Cass R. Sunstein & Hunt Allcott, Regulating Internalities, J. Pol'y Analysis & Mgmt. (forthcoming 2015).0276-8739http://nrs.harvard.edu/urn-3:HUL.InstRepos:16150609This paper offers a framework for regulating internalities. Using a simple economic model, we provide four principles for designing and evaluating behaviorally-motivated policy. We then outline rules for determining which contexts reliably reflect true preferences and discuss empirical strategies for measuring internalities. As a case study, we focus on energy efficiency policy, including Corporate Average Fuel Economy (CAFE) standards and appliance and lighting energy efficiency standards.en-USJournal Article2015-06-0410.1002/pam.21844