Self-Selecting Agri-environmental Policieswith an Application to the Don Watershed
AbstractWe 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 calibrate the model using data on a French watershed and we simulate the optimal second-best policy and characterize the allocation of the abatement effort among the producers. Copyright Springer 2005
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Bibliographic InfoArticle provided by European Association of Environmental and Resource Economists in its journal Environmental & Resource Economics.
Volume (Year): 31 (2005)
Issue (Month): 3 (07)
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Web page: http://www.springerlink.com/link.asp?id=100263
asymmetric information; non-linear taxation; non-point source pollution; water pollution; D82; Q19;
Find related papers by JEL classification:
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- Q19 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Other
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- Tigran Melkonyan & Michael Taylor, 2010. "Regulatory Policy Design for Agroecosystem Management on Public Rangelands," Working Papers 10-007, University of Nevada, Reno, Department of Economics & University of Nevada, Reno , Department of Resource Economics.
- Pierre Dupraz & Karine Latouche & Nadine Turpin, 2007. "Programmes agri-environnementaux en présence d’effets de seuil," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 82, pages 5-32.
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