Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 841: How Much Liberty Should We Have? Citizens versus Experts on Regulating Externalities and Internalities

Fredrik Carlsson (), Olof Johansson-Stenman () and Mitesh Kataria ()
Additional contact information
Fredrik Carlsson: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O. Box 640, SE 40530 GÖTEBORG, Sweden
Olof Johansson-Stenman: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O. Box 640, SE 40530 GÖTEBORG, Sweden
Mitesh Kataria: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O. Box 640, SE 40530 GÖTEBORG, Sweden

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.

Keywords: externalities; internalities; paternalism; experts; citizens

JEL-codes: D04; D62; D91; Q58

Language: English

24 pages, January 19, 2024

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