| Author: | Dionne, G. Spaeter, S. |
| Title: | Environmental risk and extended liability: the case of green technologies |
| Journal: | Journal of Public Economics
2003 : MAY, VOL. 87:5-6, p. 1025-1060 |
| Index terms: | Environmental economics Liability Investments Moral hazard |
| Language: | eng |
| Abstract: | The authors analyze the effect of extending environmental risk to banks. They assume that the firm needs external funds to invest in green technology and reduce the risk of environmental damage. They show that, under moral hazard, the firm does not always invest less in prevention than the optimal social level. They also show that extending liability may improve both the level of prevention and the level of compensation. |
SCIMA