Sandra Rousseau, Variable compliance incentives in conservation policies in a dynamic setting, Journal of Environmental Economics and Policy 2012, vol. 1(3), 313-326
The analysis jointly considers the dynamic aspects of conservation programs with incomplete compliance and allows land users’ behavior to change over time. A distinction is made between compliance and participation incentives. Under conditions that are frequently observed in practice, the author finds that compliance incentives of program participants are variable over time, which can have a significant impact on the efficacy of conservation policies. The author matches existing enforcement policies with the rational actor model to demonstrate the effects of different kinds of penalty and monitoring schemes for a range of program participant characteristics. Land users are shown to have sizeable incentives to participate in compensation schemes, but their incentives for compliance with program requirements are considerably lower.
Full publication here.