Compliance Monitoring and Agri-Environmental Policy

Chongwoo Choe and Iain Fraser

No 1997.08, Working Papers from School of Economics, La Trobe University

Abstract: This paper uses an optimal contract approach to examine the issue of compliance monitoring in agri-environmental policy when the farmer is risk neutral and risk averse. The environmental agency chooses monitoring accuracy and payments for farmer's (non-)compliance. With a risk-neutral farmer, an optimal policy involves maximum allowable reward for compliance and maximum allowable penalty for non-compliance.

Keywords: Information; Environmental Management (search for similar items in EconPapers)
Pages: 22 pages
Date: 1997
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Journal Article: Compliance Monitoring and Agri‐Environmental Policy (1999)
Working Paper: Compliance Monitoring and Agri-Environmental Policy (1997)
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