Groom, Benjamin and Palmer, Charles (2010) 'Cost Effective Provision of Environmental Services: The Role of Relaxing Market Constraints.' Environment and Development Economics, 15 (2). pp. 219-240. (Forthcoming)
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Ferraro and Simpson (2002) argue that when markets are competitive, direct payments for environmental services are more cost effective in achieving environmental goals than indirect payments, say, for capital. However, when eco-entrepreneurs face non-price rationing in input or output markets, as is typical for e.g. credit in developing countries for, we show that interventions which relax constraints can be more cost-e¤ective than direct payments. One corollary of this is that such indirect payments can be preferred to direct payments by interveners (e.g. NGOs) and eco-entrepreneurs alike. Both of these outcomes are more likely when constraints are severe.
|Item Type:||Journal Article|
|SOAS Departments & Centres:||Faculty of Law and Social Sciences > Department of Economics|
|DOI (Digital Object Identifier):||10.1017/S1355770X09990167|
|Depositing User:||Benjamin Groom|
|Date Deposited:||10 Nov 2010 12:42|
Available Versions of this Item
Direct vs Indirect Payments for Environmental Services:
The Role of Relaxing Market Constraints. (deposited 14 Sep 2009 09:08)
- Cost Effective Provision of Environmental Services: The Role of Relaxing Market Constraints. (deposited 10 Nov 2010 12:42) [Currently Displayed]
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