DSpace - Tor Vergata >
Facoltà di Economia >
CEIS - Centre for International Studies on Economic Growth >
Please use this identifier to cite or link to this item:
Full metadata record
|description.abstract||This paper analyzes, using a modified version of the Laffont & Tirole (1993) model, a framework in which an environmental agency and a public utilities agency regulate production and abatement activities of a polluting Public Utility, either cooperating or acting separetely. When symmetric information about costs is assumed, first best in abatement and cost reducing effort levels is achieved, irrespective of cooperation or separation.
When, on the other hand, the firm has an informational advantage, cooperation between regulators leads to the standard L. & T. results, while non-cooperation tighten the trade off between incentives to efficiency and rent extraction, because the
environmental regulator's objective function does not account for the public utility's profits. As a result, both cost-reducing effort level and pollution abatement level required from the inefficient type firm are lower if the two regulators act separately.||en|
|relation.ispartofseries||Quaderni CEIS; 173||-|
|subject.classification||SECS-P/03; Scienza delle finanze||en|
|title||Common agency and pollution control||en|
|subject.jel||Q2; Renewable resources and conservation, environmental management||en|
|Appears in Collections:||Quaderni|
Files in This Item:
Show simple item record
All items in DSpace are protected by copyright, with all rights reserved.