BREAD Working Paper No. 529, December 2017

Environmental externalities and free-riding in the household Kelsey Jack, Seema Jayachandran, Sarojini Rao Abstract Water use and electricity use, which generate negative environmental externalities, are susceptible to a second externality problem: with household-level billing, each per- son enjoys private benefits of consumption but shares the cost with other household members. If individual usage is imperfectly […]