Hidden action, risk aversion and variable fines in agri-environmental schemes
Adam Ozanne and
Ben White ()
Australian Journal of Agricultural and Resource Economics, 2008, vol. 52, issue 2
This note analyses the design of agri-environmental schemes for risk-averse producers whose input usage is only observable by costly monitoring. The scheme penalises producers in proportion to input use in excess of a quota. A striking result is that if the scheme is designed in such a way that producers always comply with the quota, risk aversion is not relevant in determining the level of input use.
Keywords: agri-environmental policy; monitoring; risk aversion; Environmental Economics and Policy; Risk and Uncertainty (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (10) Track citations by RSS feed
Downloads: (external link)
Journal Article: Hidden action, risk aversion and variable fines in agri-environmental schemes * (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:ags:aareaj:118539
Access Statistics for this article
Australian Journal of Agricultural and Resource Economics is currently edited by June
More articles in Australian Journal of Agricultural and Resource Economics from Australian Agricultural and Resource Economics Society Contact information at EDIRC.
Series data maintained by AgEcon Search ().