An Experimental Exploration of a Voluntary Mechanism to Reduce Nonpoint Source Water Pollution with a Background Threat of Regulation

Jordan Suter, Christian Vossler, Gregory Poe, William D. Schulze and Kathleen Segerson ()

No 21416, 2006 Annual meeting, July 23-26, Long Beach, CA from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: In this paper we build on a voluntary mechanism introduced by Segerson and Wu (2006) that uses the threat of an ambient tax to induce nonpoint source polluters to reduce emissions. In addition to reviewing Segerson and Wu's policy, we propose a new voluntary/threat policy that offers some theoretical advantages over that put forward by Segerson and Wu. We then test various forms of voluntary/threat policies in the experimental economics laboratory and compare the outcomes to a policy that administers strictly a per unit ambient tax.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 40
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea06:21416

DOI: 10.22004/ag.econ.21416

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