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Title: Designing Regulatory Policies for Complex Externalities: The Case of Agricultural Pollution
Authors: Kampas, Athanasios
Melfou, Katerina
Aftab, Ashar
Issue Date: 213
Abstract: The paper examines the issue of designing and implementing policy measures to control complex agricultural externalities. Complex externalities refer to the situation where a production (firm on firm) externality coexists with a detrimental (firm on society) externality. The paper identifies the optimal solution for complex externalities, which is a combination of spatially differentiated taxes. However, severe information requirements render the first-best policy infeasible. Finally, a likely voluntary scheme based on firm self-report is examined which may enforce firm compliance with the optimal policy.
Institution/Association: Agricultural Economics Review>Volume 14, Issue 2, June 2013
Total Pages: 14
From Page: 75
To Page: 88
Collections:Volume 14, Issue 2, June 2013

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