Global S&T Development Trend Analysis Platform of Resources and Environment
DOI | 10.1016/j.ecolecon.2020.106804 |
Overexploitation Risk in “Green Mountains and Clear Water” | |
Su Xiu Xu | |
2020-09-01 | |
发表期刊 | Ecological Economics
![]() |
出版年 | 2020 |
英文摘要 | This study is motivated by a real project in China in the context of “Green Mountains and Clear Water”. As pointed out by Xi (2016), “to improve the environment is to boost productivity”. The purpose of this paper is to devise optimal capital allocation and compensation mechanisms when there exist social and environmental responsibility risks. A firm with access to a single investment project in an ecoregion may engage in environmental violations, and the ecoregion's proprietor (say municipal government) with preferences for ecological protection privately observes the process audit effort level. I extend the contract theory to a more general setting and find that given linear compensation schemes, the optimal solution is to set the non-negative share of project cash flows larger than 100% while the fixed component negative. The incentive-compatible mechanism gives rise to the overinvestment and overexploitation problems relative to the first-best level, and both problems become smaller as process audit effort level increases. Finally, I investigate how the model may vary with relevant characteristics such as multi-resource requirement, risk-averse government, and verifiable process audit information. Given unverifiable process audit information, municipal government faces a dilemma of gaining a higher compensation but losing a larger ecological area. In such a case, municipal government has to seek a compromise and may pin hopes on higher audit effort levels from superior administration units. The analysis also highlights the power of stricter process audit to reduce market surplus loss caused by information asymmetry. |
领域 | 资源环境 |
URL | 查看原文 |
引用统计 | |
文献类型 | 期刊论文 |
条目标识符 | http://119.78.100.173/C666/handle/2XK7JSWQ/292987 |
专题 | 资源环境科学 |
推荐引用方式 GB/T 7714 | Su Xiu Xu. Overexploitation Risk in “Green Mountains and Clear Water”[J]. Ecological Economics,2020. |
APA | Su Xiu Xu.(2020).Overexploitation Risk in “Green Mountains and Clear Water”.Ecological Economics. |
MLA | Su Xiu Xu."Overexploitation Risk in “Green Mountains and Clear Water”".Ecological Economics (2020). |
条目包含的文件 | 条目无相关文件。 |
个性服务 |
推荐该条目 |
保存到收藏夹 |
查看访问统计 |
导出为Endnote文件 |
谷歌学术 |
谷歌学术中相似的文章 |
[Su Xiu Xu]的文章 |
百度学术 |
百度学术中相似的文章 |
[Su Xiu Xu]的文章 |
必应学术 |
必应学术中相似的文章 |
[Su Xiu Xu]的文章 |
相关权益政策 |
暂无数据 |
收藏/分享 |
除非特别说明,本系统中所有内容都受版权保护,并保留所有权利。
修改评论