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Environmental Legislation and Enforcement: A Voting Model under Asymmetric Information
Authors:Selden Thomas M  Terrones Marco E
Abstract:This paper examines the effects of asymmetric voter information on the environmental policies of democratic governments. The model builds on the electoral signaling model of Rogoff to illustrate the possibility that democratic governments may systematically overlegislate-and yet underenforce-environmental standards in a rational expectations equilibrium. The model also offers insights into the welfare implications of "right to know" legislation, proposals to depoliticize environmental policy, and private voluntary institutions.
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