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Design of Public Voluntary Environmental Programs for Nitrate Pollution in Agriculture: An Evolutionary Approach

Author

Listed:
  • Anastasios Xepapadeas

    (Department of Economics, University of Crete, Greece)

  • Constadina Passa

    (Department of Economics, University of Crete, Greece)

Abstract

The joint evolution of participation and compliance of farmers in a public VA, along with the evolution of the pollution stock is examined. Replica- tor dynamics, modeling participation and compliance, are combined with pollution stock dynamics. Fast-slow selection dynamics are used to capture the fact that distinct decisions to participate in and comply with the public VA evolve in di¤erent time scales. Conditions for evolutionary equilibria and evolutionary stable strategies regarding participation and compliance are derived. Depending on the structure of the legislation and auditing probability, polymorphic equilibria indicating partial participation and par- tial compliance or monomorphic equilibria of full (or non) compliance could be the outcome of the evolutionary processes. Multiple equilibria and irre- versibilities are possible, while convergence to evolutionary equilibria could be monotonic or oscillating. Full participation and compliance can be at- tained if the regulator is pre-committed to certain legislation and inspection probabilities, or by appropriate choices of the legislatively set emission level and the non-compliance …ne. Budget constraints associated with monitoring costs seem to produce polymorphic equilibria.

Suggested Citation

  • Anastasios Xepapadeas & Constadina Passa, 2005. "Design of Public Voluntary Environmental Programs for Nitrate Pollution in Agriculture: An Evolutionary Approach," Working Papers 0512, University of Crete, Department of Economics.
    • Handle: RePEc:crt:wpaper:0512
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    References listed on IDEAS

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    Cited by:

    1. Constadina Passa & Anastasios Xepapadeas, 2008. "Modelling of Agricultural Behavior under the CAP Regime: Policy Effectiveness and Design," Working Papers 0819, University of Crete, Department of Economics.
    2. Constadina Passa & Anastasios Xepapadeas, 2008. "Modelling of Agricultural Behavior under the CAP Regime: Assessment of Environmental Impacts and Policy Effectiveness," Working Papers 0818, University of Crete, Department of Economics.

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    More about this item

    Keywords

    Voluntary agreements; participation; compliance; evolution-;
    All these keywords.

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • L5 - Industrial Organization - - Regulation and Industrial Policy

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