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- W2905063374 abstract "Diffuse pollution from agriculture and extractive industries reduces air and water quality and contributes to climate change. We consider a setting in which a regulator must incentivize unobserved abatement given that firms have limited liability, and when they can enter and exit. We demonstrate that a simple dynamic incentive scheme can solve this difficult regulatory problem: firms pay a constant tax and receive rebates following periods of low pollution. We apply the model to water pollution from a fracking operation and simulate the contract to explore the volatility of the firm's payments and the costs of limited liability." @default.
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- W2905063374 date "2019-01-01" @default.
- W2905063374 modified "2023-09-30" @default.
- W2905063374 title "Dynamic incentive regulation of diffuse pollution" @default.
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- W2905063374 doi "https://doi.org/10.1016/j.jeem.2018.11.009" @default.
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