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A Procedure for Negotiating Pollution Reduction under Information Asymmetry. Surface Water Quality Case

Author

Listed:
  • Petr Šauer
  • Antonín Dvořák
  • Aleš Lisa
  • Petr Fiala

Abstract

This paper considers an alternative approachto surface water quality management whensociety is faced with the need to reduce waterpollution in a region with a complicatedregulatory environment. The paper is focusedon a specific kind of negotiation betweenpolluters and an authority, leading toresolution of the problem when there is theinformation asymmetry between the authorityand the polluters, i.e., the true pollutionabatement costs are known to the pollutersonly. This paper reports a laboratory experimentalcase prepared at the Department ofEnvironmental Economics, the University ofEconomics in Prague. The comparison withtheoretical computed first-best results underconditions of full information is included.Political and economic aspects of thesuggested approach are also discussed. Copyright Kluwer Academic Publishers 2003

Suggested Citation

  • Petr Šauer & Antonín Dvořák & Aleš Lisa & Petr Fiala, 2003. "A Procedure for Negotiating Pollution Reduction under Information Asymmetry. Surface Water Quality Case," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(2), pages 103-119, February.
    • Handle: RePEc:kap:enreec:v:24:y:2003:i:2:p:103-119
    DOI: 10.1023/A:1022886831892
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    References listed on IDEAS

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    1. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    2. William J. Baumol & Wallace E. Oates, 1971. "The Use of Standards and Prices for Protection of the Environment," Palgrave Macmillan Books, in: Peter Bohm & Allen V. Kneese (ed.), The Economics of Environment, pages 53-65, Palgrave Macmillan.
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    Cited by:

    1. Carlo Carraro & Carmen Marchiori & Alessandra Sgobbi, 2005. "Applications of Negotiation Theory to Water Issues," Working Papers 2005.65, Fondazione Eni Enrico Mattei.

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