The economics of environmental law enforcement: end-of-life vehicles

• Autores: K. Helen Forslind
• Localización: European journal of law and economics, ISSN 0929-1261, Vol. 23, Nº 3, 2007, págs. 223-236
• Idioma: inglés
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• Resumen

  • Abandoned End-of-Life Vehicles (ELVs) have been an environmental concern for a long time in a number of countries. This article examines different ways to address the issue by changing the incentive structure for agents. Following (Polinsky A. M., & Shavell, S. (2000). The Economic theory of public enforcement of law. Journal of Economic Literature, 38, 45–76.) a model is used to compare a fine-based system with a deposit-refund system; a combination of the two is then considered. It is shown that when the environmental harm is relatively low and constant, a deposit-refund system is preferred. When cases of high environmental harm are included, the optimal choice would be a combined system.