Elofsson, Katarina
- Department of Economics, Swedish University of Agricultural Sciences
Elofsson, Katarina
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.
nitrogen; climate change; moral hazard; Baltic Sea; policy instruments
European Review of Agricultural Economics
2014, Volume: 41, number: 2, pages: 327-351
SDG6 Clean water and sanitation
SDG13 Climate action
Economics
DOI: https://doi.org/10.1093/erae/jbt018
https://res.slu.se/id/publ/64989