Private Responses to Public Incentives for Invasive Species Management
AbstractIn this paper the impact of public policies such as subsidies and taxation on invasive species management is explored in a Markov chain framework. Private agents react to public incentives based upon their long term expected profits and have the option of taking measures such as abatement, monitoring and reporting. Conditions for perverse incentives are derived. The impact of sequencing of taxation and subsides on spread of risks if explored. One key finding of this paper is that excessive regulation may exacerbate the invasive species problem.
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Bibliographic InfoPaper provided by University of Florida, International Agricultural Trade and Policy Center in its series Working Papers with number 15645.
Date of creation: 2004
Date of revision:
invasive species; Markov process; perverse incentives; taxation and subsidies; Agricultural and Food Policy; Resource /Energy Economics and Policy;
Other versions of this item:
- Ranjan, Ram & Evans, Edward A., 2007. "Private Responses to Public Incentives for Invasive Species Management," Farm and Business - The Journal of The Caribbean Agro-Economic Society, Caribbean Agro-Economic Society, vol. 7(1), June.
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- Chad Settle & Jason E Shogren, 2002. "Modeling Native-Exotic Species within Yellowstone Lake," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(5), pages 1323-1328.
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