In this paper we build on a voluntary mechanism introduced by Segerson and Wu (2006) that uses the threat of an ambient tax to induce nonpoint source polluters to reduce emissions. In addition to reviewing Segerson and WuÂ's policy, we propose a new voluntary/threat policy that offers some theoretical advantages over that put forward by Segerson and Wu. We then test various forms of voluntary/threat policies in the experimental economics laboratory and compare the outcomes to a policy that administers strictly a per unit ambient tax.
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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2006 Annual meeting, July 23-26, Long Beach, CA with number
21416.
Length: Date of creation: 2006 Date of revision: Handle: RePEc:ags:aaea06:21416
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