The regulation of non-point source pollution and risk preferences: An experimental approach

B-Tier
Journal: Ecological Economics
Year: 2012
Volume: 73
Issue: C
Pages: 179-187

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Many environmental problems, notably arising from agriculture, can be classified as non-point source pollution problems. In this paper we present results of an experimental study on the performance of three mechanisms designed to deal with such problems: collective fining, random fining, and a tax-subsidy scheme. We find that the fining schemes induce under-abatement, a feature being enforced with experience. We further elicit the participants' risk attitude and show that the performance of collective fining is not affected by the subjects' risk preferences. Under a system based on random fining the performance of the mechanism worsens in the presence of risk seeking subjects. However, coordination on over-abatement under the tax-subsidy can be alleviated if subjects are risk averse.

Technical Details

RePEc Handle
repec:eee:ecolec:v:73:y:2012:i:c:p:179-187
Journal Field
Environment
Author Count
2
Added to Database
2026-01-25