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Optimal Incentives to Reduce Downstream Pollution Under Asymmetric Information

Author

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  • Kerschbamer, R.
  • Maderner, N.

Abstract

This paper derives optimal bribes to reduce upstream transfrontier emissions in the presence of asymmetric information on the polluter's concern for the environment.

Suggested Citation

  • Kerschbamer, R. & Maderner, N., 1998. "Optimal Incentives to Reduce Downstream Pollution Under Asymmetric Information," Papers 9805, Washington St. Louis - School of Business and Political Economy.
    • Handle: RePEc:fth:waslbp:9805
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    Keywords

    POLLUTION ; INFORMATION;

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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