Moral Hazard, Targeting and Contract Duration in Agri‐Environmental Policy
AbstractThis paper extends the multi-period agri-environmental contract model of Fraser (2004) so that it contains a more realistic specification of the inter-temporal penalties for non-compliance, and therefore of the inter-temporal moral hazard problem in agri-environmental policy design. On this basis it is shown that a farmer will have an unambiguous preference for cheating early over cheating late in the contract period based on differences in the expected cost of compliance. It is then shown how the principal can make use of this unambiguous preference to target monitoring resources intertemporally, and in so doing, to encourage full contract duration compliance.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Journal of Agricultural Economics.
Volume (Year): 63 (2012)
Issue (Month): 1 (02)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0021-857X
Other versions of this item:
- Fraser, Rob W., 2011. "Moral Hazard, Targeting and Contract Duration in Agri-Environmental Policy," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100550, Australian Agricultural and Resource Economics Society.
- Fraser, Rob W., 2011. "Moral Hazard, Targeting and Contract Duration in Agri-Environmental Policy," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108795, Agricultural Economics Society.
- Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
- Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fraser, Rob W., 2002.
"Moral Hazard and Risk Management in Agri-Environmental Policy,"
2002 Conference (46th), February 13-15, 2002, Canberra
125086, Australian Agricultural and Resource Economics Society.
- Rob Fraser, 2002. "Moral Hazard and Risk Management in Agri-environmental Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(3), pages 475-487.
- Ching-to Albert Ma & Ingela Alger, 1999.
"Moral Hazard, Insurance and Some Collusion,"
FMG Discussion Papers
dp318, Financial Markets Group.
- Ingela Alger & Ching-to Albert Ma, 2001. "Moral Hazard, Insurance, and Some Collusion," Boston College Working Papers in Economics 496, Boston College Department of Economics.
- Ingela Brundin & Ching-to Albert Ma, 1998. "Moral Hazard, Insurance, and Some Collusion," Papers 0089, Boston University - Industry Studies Programme.
- Adam Ozanne & Ben White, 2007. "Equivalence of Input Quotas and Input Charges under Asymmetric Information in Agri-environmental Schemes," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(2), pages 260-268, 06.
- Fraser, Rob W., 2003.
"On the use of targeting to reduce moral hazard in agri-environmental schemes,"
2003 Conference (47th), February 12-14, 2003, Fremantle, Australia
57867, Australian Agricultural and Resource Economics Society.
- Rob Fraser, 2004. "On the Use of Targeting to Reduce Moral Hazard in Agri-environmental Schemes," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(3), pages 525-540.
- repec:ltr:wpaper:1997.08 is not listed on IDEAS
- Chongwoo Choe & Iain Fraser, 1997.
"Compliance Monitoring and Agri-Environmental Policy,"
1997.08, School of Economics, La Trobe University.
- Chongwoo Choe & Iain Fraser, 1999. "Compliance Monitoring and Agri-Environmental Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 468-487.
- Heyes, Anthony, 2000. "Implementing Environmental Regulation: Enforcement and Compliance," Journal of Regulatory Economics, Springer, vol. 17(2), pages 107-29, March.
- Unay Gailhard, Ilkay & Bavorova, Miroslava & Pirscher, Frauke, 2012. "The Influence of Communication Frequency with Social Network Actors on the Continuous Innovation Adoption: Organic Farmers in Germany," 131st Seminar, September 18-19, 2012, Prague, Czech Republic 135786, European Association of Agricultural Economists.
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