The Social Costs of Environmental Goods Provision: A Cautionary Guide to the Revealed-Preference Approach

@article{Garnache2017TheSC,
  title={The Social Costs of Environmental Goods Provision: A Cautionary Guide to the Revealed-Preference Approach},
  author={Clo{\'e} Garnache and P. M{\'e}rel},
  journal={Journal of the Association of Environmental and Resource Economists},
  year={2017},
  volume={4},
  pages={1025 - 1052}
}
  • Cloé Garnache, P. Mérel
  • Published 2017
  • Economics
  • Journal of the Association of Environmental and Resource Economists
Empirically estimated behavioral models have emerged as the preferred approach to revealing the social opportunity costs of pollution abatement in many areas of environmental economics. This paper identifies conceptual issues in the implementation of the revealed-preference approach to nonpoint-source pollution and provides methods to overcome them. We focus on the common second-best setting where emissions are not measurable at the source and pollution reduction is incentivized indirectly… Expand

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