Incentives & Behavior

The Economics of Industrial Pollution Control research team is developing a perspective on polluters and their relationship to broader society. Key to this understanding is the idea that there are multiple actors and multiple incentives involved in pollution and abatement behavior. Regulators have many opportunities to affect this complicated system, but are unable to completely control it. A better image is that of regulator as "orchestrater" encouraging, cajoling, and threatening various parties to move towards a better result.