This paper analyzes a reward system that uses a club good to promote recycling. In particular, we examine a context of incomplete information in which the administrator is unable to observe the resident’s attitude towards recycling. The results suggest that despite the lack of information, the...

This paper uses a mechanism design approach to study the biodiversity improvement in a territory, where the government is the principal and the landholders are the agents. In particular, I analyze an optimal mechanism that considers multidimensional messages which includes both the biodiversity...

This paper summarizes the findings of two papers that examine the effect of environmental regulation on the production decisions and profits of polluting and green firms. Using a game-theoretic framework, we find conditions under which the green firm favors regulation (a standard finding), but...