Agri-environmental policy is modelled as a social welfare maximisation problem that recognises the potential trade-off between increased environmental benefit and increased cost of monitoring compliance. Moral hazard arises because monitoring does not detect all those who fail to comply with...

Government departments that regulate environmental management for mining have a range of choices about the timing and quality of rehabilitation. Economic theory suggests that the cost incurred by firms should relate to the social cost of the environmental damage, however, there has been little...