negligible of fixed, or farmers are highly risk averse, the moral hazard problem can be eliminated. However, if monitoring costs … depend on monitoring effort and the degree of risk aversion is low, only a second-best solution can be obtained. Numerical … simulations suggest that optimal monitoring effort declines with increasing farmer risk aversion …

This paper discusses the gain in efficiency from including deforestation risk as a targeting criterion in payments for … a payment that takes deforestation risk into account. We simulate the latter strategy both with and without a budget … constraint. Using observed past deforestation, we find that while risk-targeted payments are far more efficient, flat payments …

Environmental performance, environmental risk and its management are of contemporary interest, but to date there is … approach and disaggregating firm-level environmental risk into types related to regulations, operations and nature. For a … sample of US firms in polluting sectors, descriptive findings show that the level of risk and the likelihood of active risk …