All environmental policies involve costs of implementation and management that are distinct from pollution sources’ abatement costs. In practice, regulators and sources usually share these administrative costs. We examine theoretically an optimal policy consisting of an emissions tax and the...

We propose enforcement strategies for emissions trading programs with bankable emissions permits that guarantee complete compliance with minimal enforcement costs. Our strategies emphasize imperfect monitoring supported by a high unit penalty for reporting violations, and tying this penalty...

We study an individual transferable quota system with imperfect enforcement. We apply a model of individual fisherman behavior to the red shrimp (Pleuroncodes monodon) fishery in central-southern Chile. Simulation results suggest that illegal fishing could generate a 21% increase in fishing...