Honesty in Environmental Regulation

  1. Rodríguez-Ibeas, R. 1
  1. 1 Universidad de La Rioja
    info

    Universidad de La Rioja

    Logroño, España

    ROR https://ror.org/0553yr311

Journal:
Journal of Regulatory Economics

ISSN: 0922-680X

Year of publication: 2003

Volume: 24

Issue: 1

Pages: 35-48

Type: Article

DOI: 10.1023/A:1023995930443 SCOPUS: 2-s2.0-0037865746 WoS: WOS:000183199700002 GOOGLE SCHOLAR

More publications in: Journal of Regulatory Economics

Institutional repository: lock_openOpen access Editor

Abstract

This paper analyzes the determination of the optimal environmental regulatory policy under imperfect competition when the firms differ in their polluting technologies and degree of honesty. We show that more honesty does not necessarily imply lower social losses. The effect of honesty in social welfare depends not only on the degree of honesty measured by the proportion of honest firms and their particular cost features but also on the industry structure.