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Communication Dans Un Congrès Année : 2006

Collective liability in non-point source pollution

Responsabilité collective de la pollution diffuse

Résumé

Non point source pollution is characterized by the fact that individual emissions are not observable at a reasonable cost. This constitutes a moral hazard problem. Furthermore, we explicitly consider adverse selection, a second type of asymmetric information that arises because of the difficulty to differentiate the polluters with respect to their type (marginal benefit of polluting). In this paper, we design a tradable permits market between non point sources of pollution. In order to involve all the polluters contributing to a measured ambient pollution, we consider a collective performance based mechanism. This sanction mechanism is activated if the collective fails to build itself. The threat remains active along a negotiation process in order to make it converge to the equilibrium solution. Indeed, the agents are induced to reveal their real type (polluter, non polluter) through a negotiation on their initial allocation of permits.
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Dates et versions

hal-02818922 , version 1 (06-06-2020)

Identifiants

  • HAL Id : hal-02818922 , version 1
  • PRODINRA : 13467

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Mourad Ali, Patrick Rio, . Falculty of Economics. Collective liability in non-point source pollution. 4. Research workshop : Permit trading in different applications, Nov 2006, Halle, Germany. 14 p. ⟨hal-02818922⟩
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