Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/46749
Authors: 
Stähler, Frank
Year of Publication: 
1993
Series/Report no.: 
Kiel Working Papers 580
Abstract: 
This paper sheds some light on the possible implications of compensations which are paid for the maintenance of an environmental stock. It shows that serious complications can arise if the resource-owner can vary the compensation price. In that case, extraction-driven stock preservation policies can conflict with compensation-driven ones and imply instability. Whether compensation policies can neglect this aspect depends crucially on the credibility of sticky compensation prices.
JEL: 
D43
Q20
Document Type: 
Working Paper

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