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This paper experimentally investigates the effects of a costly punishment option on cooperation and social welfare in long, finitelyrepeated public good contribution games. In a perfect monitoringenvironment, increasing the severity of the potential punishmentmonotonically increases average net payoffs. In a more realisticimperfect monitoring environment, we find a U-shaped relationship.Access to a standard punishment technology in this setting significantly decreases net payoffs, even in the long run. Access to a severe punishment technology leads to roughly the same payoffs as with no punishment option, as the benefits of increased cooperation offset the social costs of punishing. (JEL C92, H41, K42)