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Economic considerations in drawing up regulations and contracts imposing production constraints for environmental and nature conservation



Economic considerations in drawing up regulations and contracts imposing production constraints for environmental and nature conservation



Agrarwirtschaft 42(3): 138-147



The study examines how the way in which regulations or contracts to protect the environment are drawn up, influences the probability that farmers will abide by the rules they lay down. A model is developed which treats farmers' behaviour with respect to breaking or keeping the contract from a profit maximizing point of view. This is then extended to create a contract demand model which distinguishes (a) demand in order to keep the contract, from (b) demand in order to break it.

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Accession: 002351729

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