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Efficient Contract Design for Agri‐Environment Policy

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  • Andrew Moxey
  • Ben White
  • Adam Ozanne

Abstract

This paper evaluates alternative designs for contracts between a regulator and an agricultural producer to increase the supply of environmental public goods. Contract design, based on the principal‐agent model, takes into account an asymmetry of information between the regulator and producer whereby the regulator is unable to observe precisely the producer's compliance costs. An example is included of contracts designed for nitrate abatement.

Suggested Citation

  • Andrew Moxey & Ben White & Adam Ozanne, 1999. "Efficient Contract Design for Agri‐Environment Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 187-202, May.
  • Handle: RePEc:bla:jageco:v:50:y:1999:i:2:p:187-202
    DOI: 10.1111/j.1477-9552.1999.tb00807.x
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    File URL: https://doi.org/10.1111/j.1477-9552.1999.tb00807.x
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    3. Andrew Moxey & Ben White, 1994. "Efficient Compliance With Agricultural Nitrate Pollution Standards," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(1), pages 27-37, January.
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