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| Bontems, Philippe; Rotillon, Gilles; Turpin, Nadine. |
| We consider a model of regulation for nonpoint source water pollution through non linear taxation/subsidization of agricultural production. Farmers are heterogenous along two dimensions, their ability to transform inputs into final production and the available area they possess. Asymmetric information and participation of farmers to the regulation scheme put constraints on the optimal policy that we characterize. We show that a positive relationship between size of land and ability may exacerbate adverse selection effects. We then introduce acceptability constraints and show that the intervention under acceptability amounts to reallocate production towards inefficient farmers who benefit from the reform at the expense of efficient producers. Last, we... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Environmental Economics and Policy. |
| Ano: 2005 |
URL: http://purl.umn.edu/19150 |
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| Bontems, Philippe; Rotillon, Gilles. |
| In this paper, we theoretically explore the implications of social norms in deterring pollution standard fraud along with economic incentives provided both by markets and regulatory activities. The model assumes that a large number of risk-averse individuals differ not only in their private cost of compliance with the environmental standard but also in their individual aversion to fraud. The aversion of fraud is influenced by the extent of social norms. We show that there may be multiple equilibrium rates of compliance for a given enforcement policy. We also show that under risk aversion the potential loss in market revenues has an ambiguous effect on the equilibrium rates of compliance. Similarly, increasing the probability of audit may decrease the... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Environmental Economics and Policy. |
| Ano: 2007 |
URL: http://purl.umn.edu/9974 |
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