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Enforcement Aspects of Conservation Policies: Compensation Payments versus Reserves

  • Rousseau Sandra

    ()

    (K.U.Leuven-Center for Economic Studies)

This model explicitly incorporates the dynamic aspects of conservation programs with incomplete compliance and it allows landholders’ behavior to change over time. A distinction is made between initial and continuing compliance. We find that incomplete and instrument-specific enforcement can have a significant impact on the choice between subsidy schemes and reserves for conservation policies. The results suggest that it is useless to design a conservation scheme for landholders, if the regulator is not prepared to explicitly back the program with a monitoring and enforcement policy. In general, the regulator will prefer to use compensation payments, if the cost of using government revenues is sufficiently low, the environmental benefits are equal, and the cost efficiency benefits exceed the (possible) increase in inspection costs. If the use of government funds is too costly, the reserve-type instruments will be socially beneficial.

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File URL: http://www.econ.kuleuven.ac.be/ew/academic/energmil/downloads/ete-wp-2008-01.pdf
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Paper provided by Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Energy, Transport and Environment in its series Energy, Transport and Environment Working Papers Series with number ete0801.

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Length: 34 pages
Date of creation: Feb 2008
Date of revision:
Handle: RePEc:ete:etewps:ete0801
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Web page: http://www.econ.kuleuven.be/ew/academic/energmil
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  1. C. Choe & I. Fraser, 1998. "A Note on Imperfect Monitoring of Agri-Environmental Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(2), pages 250-258.
  2. Chongwoo Choe & Iain Fraser, 1999. "Compliance Monitoring and Agri-Environmental Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 468-487.
  3. Gibson, Clark C. & Williams, John T. & Ostrom, Elinor, 2005. "Local Enforcement and Better Forests," World Development, Elsevier, vol. 33(2), pages 273-284, February.
  4. Konstantinos Giannakas & Jonathan D. Kaplan, 2005. "Policy Design and Conservation Compliance on Highly Erodible Lands," Land Economics, University of Wisconsin Press, vol. 81(1).
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