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Registros recuperados: 15 | |
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Viaggi, Davide. |
The aim of this paper is to test the relevance of considering private fixed transaction costs for contract design of Agri-Environmental Schemes, when transaction costs are negatively correlated to marginal compliance costs. In order to do so, a principal-agent model of contract design under adverse selection, including fixed private transaction costs, is developed. The model is applied to the design of payments in the Emilia Romagna region of Italy. The results show that fixed transaction costs in the range of those actually faced by farmers may significantly affect the optimal amount of environmental good to be produced by each farm type. In some cases, fixed transaction costs can even reverse the standard insight that more of a public good should be... |
Tipo: Conference Paper or Presentation |
Palavras-chave: Agri-environmental schemes; Principal-agent; Countervailing incentives; Environmental Economics and Policy. |
Ano: 2008 |
URL: http://purl.umn.edu/44322 |
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Barreiro-Hurlé, Jesús; Espinosa-Goded, Maria; Dupraz, Pierre. |
Current EU legislation states that premiums for agri-environmental schemes must be calculated based on forgone profit and additional costs. This approach has been implemented for the last decades without much success in farmer uptake, a situation that might even worsen as the 20% additional payment as incentive for participation has been excluded in the new EU Rural Development Framework 2007-2013. This paper tries to explain why supply side estimated premiums might not suffice to assure farm profitability investigating the role that fixed costs have on adoption. A farm profit maximizing model is proposed where fixed and transaction costs are split from variations in marginal profit. This model is then developed to identify the potential barriers to... |
Tipo: Conference Paper or Presentation |
Palavras-chave: Agri-environmental schemes; Fixed costs; Adoption; Environmental Economics and Policy. |
Ano: 2008 |
URL: http://purl.umn.edu/43606 |
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Registros recuperados: 15 | |
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