To Cheat or Not To Cheat: Moral Hazard and Agri‐environmental Policy. (19th August 2013)

• Record Type: Journal Article
• Authors: Fraser, Rob
• Is Part Of: Journal of agricultural economics. Volume 64:Number 3(2013)
• Page Start: 527
• Page End: 536
• Publication Date: 2013-08-19
• Subjects: Agriculture -- Economic aspects -- Periodicals; 338.1
• DOI: 10.1111/1477-9552.12035
• Languages: English
• ISSNs: 0021-857X

Abstract

<abstract abstract-type="main" id="jage12035-abs-0001"> <title>Abstract</title> <p>This Address examines the moral hazard problem in agri‐environmental policy. It begins with a theoretical analysis of moral hazard in this context, including the identification of eight potential causes of cheating behaviour among farmers. But is cheating behaviour among farmers actually a problem for agri‐environmental policy? And if it is, which are the statistically significant causes of concern? The answer seems to be: "we don't know" as there are currently no empirical analyses of the moral hazard problem and its causes in agri‐environmental policy. On this basis I analyse a set of policy solutions – to a problem for which we have no evidence of its causes or extent!</p> </abstract>