The paradigm of personal transportation is changing. Electric vehicles are here. The arrival of the Tesla Roadster, Nissan Leaf, and Chevy Volt has changed the way in which we have to think about the energy that fuels our transportation needs. As PEVs find their way into garages this year and especially in the coming years, the neighborhood, city, state, and regional electric infrastructure will take on a new importance for many people as their interactions with it become significantly more complex and intimate as a result of regular electric vehicle charging.

<p>The increased use of information disclosure in environmental policy raises questions of whether and how provision of information motivates changes in behavior. Accurate assessment of the value of information provision in reducing environmental risks requires understanding how actors respond to risk information. Chapter two examines the effects of disclosure of information on risk perception, knowledge about risks, and actions to mitigate risk from arsenic in private drinking well water. We conduct an experiment where we manipulate how information about the health risks posed by arsenic in drinking water is presented to users of private wells. This is one of the first field experiments to look at framing effects for long-term, latent environmental health risks. In contrast to much of the existing literature, we find that information frame does not affect risk perception or actions taken to address risk for low level of risk. </p><p>Chapter three examines how risk perceptions are affected by variations in risk communication, specifically addressing questions raised in the field experiment. We conduct an experiment about the health risks posed by arsenic in drinking water and introduce four manipulations in communication with experimental subjects: arsenic level, information framing, bright lines and relative risk. Chapter three suggests careful consideration must be taken in designing the disclosure of moderate levels of risk to ensure that information disclosure programs effectively convey health-based recommendations. Without these considerations, information disclosure programs may unwittingly and unnecessarily heightening concern among people facing moderate levels of risk. We consider this finding especially important because a broad number of environmental and environmental health risks that are currently unregulated pose moderate levels of risk. </p><p>The final chapter asks if the act of disclosing information changes the behavior of those who provide the information. Chapter four seeks to determine the degree to which information disclosure, in the form of TRI, results in improvements in environmental performance. Our work isolates the effect of information disclosure by using changes in the TRI reporting requirements to help identify the causal effect of disclosure from other potential explanations of changes in environmental performance. We find limited evidence that facilities newly reporting for a chemical have greater proportional decreases in total releases. The policy implications of Chapter 4 suggest that information disclosure should not be considered a substitute for regulation of toxic chemicals.</p> / Dissertation

Concerns regarding energy security, resource sustainability, and environmental protection have heightened interests in renewable fuels and sparked the research and development of ethanol as a transportation fuel. This study examines consumers’ willingness to pay for ethanol from various potential feedstocks; corn, switchgrass and wood wastes. Data was collected via a survey of fuel consumers across the United States in 2009. Results show that consumers have a preference for E85 (a fuel blend with 85 percent ethanol and 15 percent gasoline) from corn, switchgrass and wood wastes compared to E0 (gasoline) and a preference for E85 from switchgrass and wood wastes, but not corn when compared to E10 (10 percent ethanol and 90 percent gasoline). Also, consumers have a preference for E85 compared to E10 but not compared to E0. Mean WTP for E85 was insignificant across all models, but significant for all other product attributes; percentage of fuel imported, percentage of greenhouse gas emissions reduced, and the proximity of fuel in driving distance. This suggests a WTP for a combination of fuel attributes associated with ethanol rather than just for E85. Results suggest that price and proximity of the fuel have a greater impact on fuel selection than percentage of the fuel imported and reductions in greenhouse gas emissions. Republicans had a positive WTP for E85 compared to E10 and a negative WTP for E85 compared to E0 regardless of feedstock, which may suggest that Republicans actually have no preference for E85; however, these findings may also suggest that Republicans view E85 as a voluntary “policy” whereas E10 is an example of government intrusion in the free market. Thus, they may ultimately have preferences over the manner in which the blend is being introduced to the market. Across all models, those undecided in political affiliation, those previously familiar with ethanol, and those who prefer to devote U.S. farmland to food instead of fuel generally exhibited a lower WTP for E85 while Westerners, those worried about the environment, and those believe that reducing dependence on foreign oil is more important than environmental protection generally had a greater WTP for E85.

Essays in this dissertation cover three topics in behavioral economics: social preferences, ambiguity aversion and self-control. The first essay, based on work with Aurelie Ouss, studies the behavior of individuals making decisions to punish norm violators. It addresses two types of questions. First, what parameters affect these punishment decisions? Second, what do outcomes look like when these decisions are aggregated? Experimental data show that individual punishment decisions appear to respond to individual cost and not necessarily social cost. Additionally, individuals appear not to take the probability that violators will be apprehended into account. Finally, punishment by others does not act as a perfect substitute for own punishment. These combined effects mean that aggregate levels of punishment rarely resemble those in line with commonly used benchmarks such as optimal deterrence. The second essay, based on work with Uma Karmarkar, studies how information affects valuation of ambiguous financial prospects. Experimental results show that across several domains individual valuations appear to react much more strongly to favorable information than unfavorable information. Additional studies indicate that this effect is driven by two mechanisms. The first is a bias towards the integration of favorable information. The second is an effect of ambiguity aversion, individuals appear to be averse to subjective ignorance and so unfavorable information has a positive component: it removes some of this uncertainty. The final essay looks at how dual-self (Fudenberg-Levine (2006)) decision makers can use commitment contracts to combat self-control problems and implement long-run optimal behavior. The main results show that both stick contracts, which levy a fine when an individual gives in to a temptation, and carrot contracts, which give rewards for resisting, can simulate binding commitments. However, carrots have several advantages over sticks. Sticks create a temptation to cancel the contract, carrots are less vulnerable to trembles and finally carrots allow for more flexibility. / Economics

Public policy efforts to curb obesity often adhere to a rational actor model of human behavior, asserting that consumer behavior will change provided proper economic incentives, nutritional information, and health education. However, rigorous academic research related to such questions remains limited in scope and appears inconclusive as to the success of such economic and cognitive interventions. In contrast, research in social psychology and behavioral economics suggests that decision making is partially based on heuristics, or rules of thumb, and susceptible to powerful cognitive biases. External cues can subtly influence decision making in powerful ways. In this paper, after discussing existing policy efforts and their limitations, we use concepts from behavioral decision theory to design interventions related to different psychological domains in hopes of providing a more complete understanding of consumer dietary decision making. We move beyond traditional cognitive methods, namely the provision of nutritional information and economic incentives, to suggest the value of other cognitive, affective, social, and environmental influences in shaping food choices. Over a 21-month period, we tested 9 interventions in a point-of-purchase field study at a hospital cafeteria, focusing on the healthfulness of beverage purchases and chip purchases. Information, in the form of novel, reinforcing health messages, had the most consistently beneficial effect on the healthfulness of purchases. Traffic light colored-nutritional labeling, affect-based cues (smiley faces and frowny faces), and environmental changes including grouping items together based on level of healthfulness ("grouping by healthfulness") and pairing an unhealthy item with a healthier alternative ("healthy substitute pairing") also affected choices. Messages related to social norms had no effect on purchases. Our work adds to existing consumer behavior research and helps to inform health policy of additional cognitive factors and biases that must be taken into account when designing interventions and which can, indeed, be leveraged to influence dietary behavior. This is the first study of which we know to test the relative effects of this number and variety (economic, cognitive, affective, social, and environmental) of theory-based behavioral nudges on food choice in one setting.

This dissertation presents three papers applying health economics to the study of risky behaviors. The first uses data from the 1979 National Longitudinal Survey of Youth to examine the relationship between adverse events and risky behaviors among adolescents. Substance use responses to experiencing either of two adverse events--violent crime victimization or death of a non-family member one felt close to--explain 6.7 percent of first cigarette use, and 14.3 percent of first use of illegal drugs other than marijuana. Analyses of exercise, a positive coping mechanism, find shock-responses consistent with a coping-response, but not with rational, time-inconsistent, or non-rational drivers considered here. I conclude that distressing events lead to risky behaviors, with a coping response contributing to this effect.

Researchers have increasingly directed attention to the importance of emotions in decision making. Recent theories have focused on the interpersonal effects of emotions--the influence of the decision maker's expressed emotions on observers' decisions and judgments. In the current research, we examine people's expectations of how incidental, discrete emotions affect behavior. We also study how these expectations affect decisions in interactive settings, and contrast them with how emotions actually impact other people's behavior.These ideas were tested in four studies. In Study 1a, participants (N = 58) answered a questionnaire asking their perceptions of how different emotions affect behavior. In Study 1b, participants (N = 203) read a number of hypothetical scenarios in which different interactions between them and another person took place. Studies 2 (N = 98) and 3 (N = 132) were two economic games -- a Stag-Hunt game and a Trust Game -- involving decisions with non-trivial financial consequences.Across these four studies, I found that people do have strong beliefs about how incidental emotions affect behaviors. Because of these beliefs, when told about their counterparts' emotional state, people in interactive settings modify their behavior. The impact of people's beliefs on behavior, however, was more consistent for negative emotions such as anger and fear, than for positive emotions such as happiness and gratitude. These findings also indicate that people are sensitive to the different effects of different emotions: different negative emotions such as guilt and anger have different effects on their expectations. Finally, I found that people's expectations about how their counterparts' emotions affect behavior can be inaccurate in specific settings.

Using data from the Michigan Consumer Survey, I explore alternatives for constructing the Index of Consumer Sentiment (ICS) to improve its forecasting power regarding consumption and its components. Questions which seemed to matter in the past are no longer good predictors. For more recent sample periods, expectations of automobile purchases, unemployment, and current economic situations are more important than categories selected previously. An alternative index is constructed accordingly. Applying different techniques suggested in the literature, the new index significantly outperforms the ICS in both in-sample and out-of-sample tests. Furthermore, the new index also produces more accurate results when forecasting recessions.

Prepay or pay-as-you-go programs are an increasingly popular type of rate plan offered by electric utilities. Under these plans, ratepayers must keep a positive balance at all times to avoid being automatically disconnected, they are charged daily for their usage, and they are provided with a means to monitor their consumption. One of the suggested benefits of these plans is that they allow electricity consumers to better manage their usage. Using household level monthly usage data from customers enrolled in prepay programs at two Kentucky rural electric cooperatives, we investigate whether there is a change in consumption after these customers enrolled in the program. To address this question, we employ a fixed-effects model. The results of our model indicate that prepay customers reduce their consumption by an average of 11% after enrolling in the program. We also find that this response is larger during periods of high or low temperatures than during mild weather. Furthermore, we find evidence that the prepayment effect diminishes over the length of time that a customer is enrolled in the program.

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