A guide to extracting information from environmental pressure groups

Eric Nævdal, Richard J. Brazee

Research output: Contribution to journalArticle

Abstract

This paper examines the relationship between environmental pressure groups and environmental policy makers. Environmental pressure groups are assumed to possess valuable private information on environmental issues. Environmental pressure groups are also assumed to pursue their own preferences, which are only partially correlated with policy makers' preferences. A new aspect is that binding contracts with side payments are not allowed, which accurately describes the interaction between environmental pressure groups and governments. It is shown that by choosing probabilities of acting on environmental pressure groups' signals, a decision maker can force environmental pressure groups to reveal superior information even in the absence of binding contracts.

Original languageEnglish (US)
Pages (from-to)105-119
Number of pages15
JournalEnvironmental and Resource Economics
Volume16
Issue number1
DOIs
StatePublished - May 1 2000

Keywords

  • Asymmetric information
  • Environmental decision making
  • Truth-telling

ASJC Scopus subject areas

  • Economics and Econometrics
  • Management, Monitoring, Policy and Law

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