Segerson, Kathleen; Wu, JunJie - Department of Economics, University of Connecticut - 2003
policy can induce cost-minimizing abatement without the need for farm-specific information. In this sense, the combined … cutoff level equal to the target level of pollution, the regulator can eliminate free riding and ensure that cost-minimizing … abatement is the unique Nash equilibrium under which the target is met voluntarily. However, this cutoff level also ensures that …