Ambient environmental inspections followed by sequential firm inspections
Laurent Franckx ()
Energy, Transport and Environment Working Papers Series from KU Leuven, Department of Economics - Research Group Energy, Transport and Environment
We consider an environmental enforcement agency who uses the measurement of ambient pollution to guide its inspections of individual polluters. We compare two different uses of this information. In a first model, the agency uses a ``threshold strategy": if ambient pollution exceeds an endogenous threshold, the agency inspects all individual polluters simultaneously. In a second model, the agency inspects polluters sequentially, and updates its beliefs after each firm inspection. If one ignores non-discrimination principles, and if the time span between two inspections is short enough, this sequential inspection policy is always superior to a simultaneous inspection policy.
Pages: 18 pages
New Economics Papers: this item is included in nep-ene, nep-ent and nep-net
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ete:etewps:ete0104
Access Statistics for this paper
More papers in Energy, Transport and Environment Working Papers Series from KU Leuven, Department of Economics - Research Group Energy, Transport and Environment Contact information at EDIRC.
Bibliographic data for series maintained by library EBIB ().