This article proposes a method to accommodate asymmetric information on farmers' risk preferences in designing voluntary environmental policies. By incorporating stochastic efficiency rules in a mechanism design problem, the government can find incentive-compatible policies by knowing only the...

In seeking appropriate economic policies to address non-trade concerns (NTC), a distinction must be made between those concerns that relate to market failure and the misallocation of resources, and those that relate to distributional issues. To deal with both types of NTC, domestic policies are...