Environmental policy as a multi-task principal-agent problem
We use a multi-task principal-agent model with moral hazard to study environmental regulation of a private agent by an EPA that can also allocate its budget to an alternative project with environmental benefits. In a first possible optimum, the EPA imposes a flat fine that exhausts the agent's participation constraint. In the second, the EPA provides the harshest possible punishment for a "poor" observed environmental performance and the highest possible reward for a "good" observed environmental performance. Increases in the available budget and in the maximally allowed penalty have then an ambiguous e_ect on total environmental quality.
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- Gabel H. Landis & Sinclair-Desgagne Bernard, 1993. "Managerial Incentives and Environmental Compliance," Journal of Environmental Economics and Management, Elsevier, vol. 24(3), pages 229-240, May.
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"Environmental Auditing in Management Systems and Public Policy,"
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Elsevier, vol. 33(3), pages 331-346, July.
- H. Landis Gabel & Bernard Sinclair-Desgagné, 1996. "Environmental Auditing in Management Systems and Public Policy," CIRANO Working Papers 96s-21, CIRANO.
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- David Martimort, 1996.
"The multiprincipal nature of government,"
153244, Institut National de la Recherche Agronomique, France.
- Holmstrom, Bengt & Milgrom, Paul, 1991. "Multitask Principal-Agent Analyses: Incentive Contracts, Asset Ownership, and Job Design," Journal of Law, Economics and Organization, Oxford University Press, vol. 7(0), pages 24-52, Special I.
- Jean-Jacques Laffont & David Martimort, 1999.
"Separation of Regulators Against Collusive Behavior,"
RAND Journal of Economics,
The RAND Corporation, vol. 30(2), pages 232-262, Summer.
- Laffont, Jean-Jacques & Martimort, David, 1994. "Separation of Regulators against Collusive Behavior," IDEI Working Papers 44, Institut d'Économie Industrielle (IDEI), Toulouse.
- Sinclair-Desgagne, Bernard, 1994. "The First-Order Approach to Multi-signal Principal-Agent Problems," Econometrica, Econometric Society, vol. 62(2), pages 459-66, March.
- Sinclair-Desgagne, Bernard, 1999. "How to Restore Higher-Powered Incentives in Multitask Agencies," Journal of Law, Economics and Organization, Oxford University Press, vol. 15(2), pages 418-33, July.
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