Prevention and treatment in environmental policy design.

The writers present an analytical framework for investigating the choices of prevention versus treatment in the context of environmental policy design. They consider the case where effectiveness of treatment is known at the time that the allocation decisions must be taken. They then extend the ana...

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Detalles Bibliográficos
Publicado en:Journal of Environmental Economics & Management Vol. 33; pp. 196 - 214
Autores principales: Barrett, James, Segerson, Kathleen
Formato: Artículo
Publicado: Academic Press Inc. June 1997
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Acceso en línea:Ver este registro en EBSCOhost
Descripción
Sumario:The writers present an analytical framework for investigating the choices of prevention versus treatment in the context of environmental policy design. They consider the case where effectiveness of treatment is known at the time that the allocation decisions must be taken. They then extend the analysis to the case where the effectiveness is unsure and develop a framework for considering the tradeoff between prevention and treatment under a “safety” rule. In both cases, they analyze the factors that affect the allocation of resources between prevention and treatment and demonstrate that these factors can influence the second-best allocations of resources in ways that are contrary to the effect under the Pareto efficient allocation.