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The Cost-Effective Choice of Policy Instruments to Cap Aggregate Emissions with Costly Enforcement

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  • Marcelo Caffera
  • Carlos Chávez

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  • Marcelo Caffera & Carlos Chávez, 2011. "The Cost-Effective Choice of Policy Instruments to Cap Aggregate Emissions with Costly Enforcement," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(4), pages 531-557, December.
    • Handle: RePEc:kap:enreec:v:50:y:2011:i:4:p:531-557
    DOI: 10.1007/s10640-011-9481-y
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    References listed on IDEAS

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    1. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
    2. Segerson, Kathleen & Tietenberg, Tom, 1992. "The structure of penalties in environmental enforcement: An economic analysis," Journal of Environmental Economics and Management, Elsevier, vol. 23(2), pages 179-200, September.
    3. Stranlund, John K. & Chávez, Carlos A. & Villena, Mauricio G., 2009. "The optimal pricing of pollution when enforcement is costly," Journal of Environmental Economics and Management, Elsevier, vol. 58(2), pages 183-191, September.
    4. John Stranlund, 2007. "The regulatory choice of noncompliance in emissions trading programs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(1), pages 99-117, September.
    5. Carlos A. Chávez & Mauricio G. Villena & John K.Stranlund, 2009. "The choice of policy instruments to control pollution under costly enforcement and incomplete information," Journal of Applied Economics, Universidad del CEMA, vol. 12, pages 207-227, November.
    6. Jost, Peter-J., 1997. "Regulatory enforcement in the presence of a court system," International Review of Law and Economics, Elsevier, vol. 17(4), pages 491-508, December.
    7. Anthony Heyes, 1994. "Environmental enforcement when ‘inspectability’ is endogenous: A model with overshooting properties," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 4(5), pages 479-494, October.
    8. Lawrence H. Goulder & Ian W. H. Parry, 2008. "Instrument Choice in Environmental Policy," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 2(2), pages 152-174, Summer.
    9. Stranlund, John K. & Dhanda, Kanwalroop Kathy, 1999. "Endogenous Monitoring and Enforcement of a Transferable Emissions Permit System," Journal of Environmental Economics and Management, Elsevier, vol. 38(3), pages 267-282, November.
    10. Hahn, Robert W & Axtell, Robert L, 1995. "Reevaluating the Relationship between Transferable Property Rights and Command-and-Control Regulation," Journal of Regulatory Economics, Springer, vol. 8(2), pages 125-148, September.
    11. Harford, Jon D., 1978. "Firm behavior under imperfectly enforceable pollution standards and taxes," Journal of Environmental Economics and Management, Elsevier, vol. 5(1), pages 26-43, March.
    12. Malik, Arun S, 1992. "Enforcement Costs and the Choice of Policy Instruments for Controlling Pollution," Economic Inquiry, Western Economic Association International, vol. 30(4), pages 714-721, October.
    13. Carmen Arguedas, 2008. "To Comply or Not To Comply? Pollution Standard Setting Under Costly Monitoring and Sanctioning," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 41(2), pages 155-168, October.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Marcelo Caffera, 2017. "The deterrence effect of linear versus convex penalties in environmental policy: laboratory evidence," Documentos de Trabajo/Working Papers 1702, Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo..
    2. John Stranlund & Carlos Chávez, 2013. "Who should bear the administrative costs of an emissions tax?," Journal of Regulatory Economics, Springer, vol. 44(1), pages 53-79, August.
    3. Stranlund, John K. & Moffitt, L. Joe, 2014. "Enforcement and price controls in emissions trading," Journal of Environmental Economics and Management, Elsevier, vol. 67(1), pages 20-38.
    4. Caffera Marcelo & Chávez Carlos, 2016. "The Regulatory Choice of Noncompliance in the Lab: Effect on Quantities, Prices, and Implications for the Design of a Cost-Effective Policy," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(2), pages 727-753, April.
    5. Carol Luengo & Marcelo Caffera & Carlos Chávez, 2020. "Uncertain penalties and compliance: experimental evidence," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 22(2), pages 197-216, April.
    6. Stranlund, John K. & Murphy, James J. & Spraggon, John M. & Zirogiannis, Nikolaos, 2019. "Tying enforcement to prices in emissions markets: An experimental evaluation," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    7. Carol Luengo & Marcelo Caffera & Carlos Chávez, 2014. "Uncertain Penalties and Compliance," Documentos de Trabajo/Working Papers 1407, Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo..
    8. Keisaku Higashida, 2019. "Burden of Inspection Costs and Effectiveness of Environmental Regulations," Discussion Paper Series 189, School of Economics, Kwansei Gakuin University.
    9. Lidia Vidal-Meliá & Carmen Arguedas & Eva Camacho-Cuena & José Luis Zofío, 2022. "An Experimental Analysis of the Effects of Imperfect Compliance on Technology Adoption," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(3), pages 425-451, March.
    10. Wu, Yisheng & Lu, Ronghua & Yang, Jing & Xu, Feng, 2021. "Low-carbon decision-making model of online shopping supply chain considering the O2O model," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    11. Caffera, Marcelo & Chávez, Carlos & Ardente, Analía, 2018. "The deterrence effect of linear versus convex penalties in environmental policy: laboratory evidence," MPRA Paper 90946, University Library of Munich, Germany.
    12. Hugo Salgado & Carlos Chávez, 2016. "Using Taxes to Deter Illegal Fishing in ITQ Systems," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(4), pages 709-724, August.
    13. Marcelo Caffera & Carlos chavez, 2012. "Complementarity of inspections and permits as leverages for capping emissions: experimental evidence," Documentos de Trabajo/Working Papers 1207, Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo..
    14. Marcelo Caffera & Carlos Chávez & Analia Ardente, 2013. "Does the structure of the fine matter?," Documentos de Trabajo/Working Papers 1305, Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo..

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    8. Carmen Arguedas, 2008. "To Comply or Not To Comply? Pollution Standard Setting Under Costly Monitoring and Sanctioning," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 41(2), pages 155-168, October.
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    More about this item

    Keywords

    Environmental policy; Cost-effectiveness; Enforcement costs; Monitoring costs; L51; Q28; K32; K42;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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