Designing Nonpoint Source Policies With Limited Information About Both Risk Attitudes and Production Technology
Petterson, Jeffrey M.; Boisvert, Richard N.
A pollution reduction program is designed where information about both techno logy and risk preferences is asymmetric. Program costs and the distribution of payments depend on the amount of information known to the policy maker. Empirically testable conditions for selfselection are derived; the method is applied to reducing nitrate contamination.
WP 2001-13 July 2001
This research was supported in part by the Cornell University Agricultural Experiment Station federal formula funds, Projects NYC -121444 and 121490, received from Cooperative State Research, Education, and Extension Service, U.S. Department of Agriculture. Additional funding was provided by USDA-ERS Cooperative Agreement 43-3-AEM-2-800900 and Hatch Project NY(C) 121444.
Charles H. Dyson School of Applied Economics and Management, Cornell University