Compliance Monitoring and Agri‐Environmental Policy

摘要: This paper examines the issue of compliance monitoring in agri-environmental policy when a farmer is risk-neutral and risk-averse. The optimal contract model presented here significantly extends generalises results conclusions Choe Fraser (1998). In this environmental agency explicitly chooses accuracy costs as well rewards for farmers. It found that, by modelling being cost-conscious may or not be higher risk-averse than farmer. Essentially, faces an explicit trade-off between incentive payments means to ensure desired behaviour from importance derived are discussed context design implementation