Contributions to solving the globe’s environmental crisis are properly expected to come from every country to a greater or lesser degree depending on their share of responsibility for environmental pollution and their financial resources. But countries in financial distress and already unable...

This project analyzes how a principal can motivate an agent to conserve rather than exploit a depletable resource. This dynamic problem is relevant for tropical deforestation as well as for other environmental problems. It is shown that the smaller is the agent's discount factor (e.g., because...