Elofsson, Katarina
- Department of Economics, Swedish University of Agricultural Sciences
Abstract
Within the European Union, it is agreed that watershed-based management of water quality problems is more efficient than centralised arrangements. In this study, a mechanism for allocating international funds to watershed authorities for nitrogen abatement in the presence of moral hazard is investigated. The results show that when there is a risk of climate change, the cost of moral hazard to the international funding agency can be high if there is a moderate likelihood of climate change and the watershed authority is guaranteed a high minimum compensation.
Keywords
nitrogen; climate change; moral hazard; Baltic Sea; policy instruments
Published in
European Review of Agricultural Economics
2014, volume: 41, number: 2, pages: 327-351
SLU Authors
Global goals (SDG)
SDG6 Clean water and sanitation
SDG13 Climate action
UKÄ Subject classification
Economics
Publication identifier
- DOI: https://doi.org/10.1093/erae/jbt018
Permanent link to this page (URI)
https://res.slu.se/id/publ/64989