Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
984506 | Research in Economics | 2007 | 10 Pages |
Abstract
This article studies the effect of uncertainty on agents' voluntary contributions to environmental quality. There is uncertainty in future environmental quality and we consider a heterogeneity in individuals' risk perception. In this context, the social optimum can be decentralized by means of tax-financed government subsidies to private provision. We distinguish the case of a government that represents perfectly agents' preferences from the case of a government with its own risk preferences. In the two cases, we show that neutrality still holds.
Related Topics
Social Sciences and Humanities
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Economics and Econometrics
Authors
Johanna Etner, Meglena Jeleva, Pierre-André Jouvet,