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Compliance Monitoring and Agri-Environmental Policy

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Author Info
Choe, C.
Fraser, I.

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Abstract

This paper uses an optimal contract approach to examine the issue of compliance monitoring in agri-environmental policy when the farmer is risk neutral and risk averse. The environmental agency chooses monitoring accuracy and payments for farmer's (non-)compliance. With a risk-neutral farmer, an optimal policy involves maximum allowable reward for compliance and maximum allowable penalty for non-compliance.

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Publisher Info
Paper provided by La Trobe - Department of Economics in its series Papers with number 97.08.

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Length: 22 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:fth:latrob:97.08

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Postal: School of Economics and Commerce, La Trobe University, Bundoora, Victoria, Australia 3089.
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Related research
Keywords: INFORMATION ; ENVIRONMENTAL MANAGEMENT;

Other versions of this item:

Find related papers by JEL classification:
D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information
Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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  1. Bazzani, G. & di Pasquale, S. & Gallerani, V. & Viaggi, D., 2002. "Water Policy And The Sustainability Of Irrigated Systems In Italy," Working Papers 14401, University of Minnesota, Center for International Food and Agricultural Policy. [Downloadable!]
  2. Rousseau, S., 2008. "Enforcement Aspects of Conservation Policies: Compensation Payments versus Reserves," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44453, European Association of Agricultural Economists. [Downloadable!]
    Other versions:
  3. Bazzani, G. & di Pasquale, S. & Gallerani, V. & Viaggi, D., 2002. "Water Regulation and Irrigated Agriculture Under the EU Water Framework Directive," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24898, European Association of Agricultural Economists. [Downloadable!]
  4. Lankoski, J. & Lichtenberg, E. & Ollikainen, M., 2008. "Agri-environmental program compliance under heterogeneous conditions," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44381, European Association of Agricultural Economists. [Downloadable!]
  5. Giannakas, Konstantinos & Kaplan, Jonathan, 2002. "Conservation Compliance On Highly Erodible Land: An Empirical Auditing Game," 2002 Annual meeting, July 28-31, Long Beach, CA 19607, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  6. Bartolini, F. & Gallerani, V. & Raggi, M. & Viaggi, D., 2008. "Modelling The Effectiveness Of Cross-Compliance Under Asymmetric Information," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6670, European Association of Agricultural Economists. [Downloadable!]
  7. Bazzani, Guido Maria & Viaggi, Davide, 2004. "Improving the design of agri-environmental policies: a case study in Italy," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 5(2), August. [Downloadable!]
  8. Yano, Y. & Blandford, D., 2008. "Agri-Environmental Policy and Moral Hazard under Output Price and Production Uncertainty," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44323, European Association of Agricultural Economists. [Downloadable!]
  9. Yano, Yuki & Blandford, David, 2008. "Use of Penalties and Rewards in Agri-Environmental Policy," 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK 36873, Agricultural Economics Society. [Downloadable!]
  10. Lankoski, Jussi & Lichtenberg, Erik & Ollikainen, Markku, 2008. "Agri-Environmental Program Compliance in a Heterogeneous Landscape," Working Papers 37797, University of Maryland, Department of Agricultural and Resource Economics. [Downloadable!]
  11. Bartolini, F. & Gallerani, V. & Raggi, M. & Viaggi, D., 2005. "Contract Design and Targeting for the Production of Public Goods in Agriculture: The Impact of the 2003 Cap Reform," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24559, European Association of Agricultural Economists. [Downloadable!]
  12. Roberto Rodríguez-Ibeas, 2006. "Environmental regulatory enforcement with “green” consumers," Spanish Economic Review, Springer, vol. 8(4), pages 271-283, December. [Downloadable!] (restricted)
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