Competitive vs. random audit mechanisms in environmental regulation: emissions, self-reporting, and the role of peer information
In a simplifying analytical framework with endogenous levels of actual and self-reported emissions, we consolidate the existing literature into three main hypotheses about the relative merits, for a resource-constrained regulator, of random (RAM) and competitive (CAM) audit mechanisms in the presenc...
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| Main Authors: | , , |
|---|---|
| Format: | Book/Monograph Working Paper |
| Language: | English |
| Published: |
Heidelberg
Universitätsbibliothek Heidelberg
[2021]
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| Edition: | This version: 11 Mrz. 2021 |
| Series: | AWI discussion paper series
no. 699 (March 2021) |
| In: |
AWI discussion paper series (no. 699 (March 2021))
|
| DOI: | 10.11588/heidok.00029474 |
| Subjects: | |
| Online Access: | Resolving-System, kostenfrei: https://nbn-resolving.de/urn:nbn:de:bsz:16-heidok-294749 Resolving-System, kostenfrei: http://dx.doi.org/10.11588/heidok.00029474 Verlag, kostenfrei, Volltext: http://www.ub.uni-heidelberg.de/archiv/29474 Resolving-System, kostenfrei: http://hdl.handle.net/10419/235022 Resolving-System: https://nbn-resolving.org/urn:nbn:de:bsz:16-heidok-294749 Langzeitarchivierung Nationalbibliothek: https://d-nb.info/122919794X/34 
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| Author Notes: | Timo Goeschl, Marcel Oestreich, Alice Soldà |
MARC
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| 520 | |a In a simplifying analytical framework with endogenous levels of actual and self-reported emissions, we consolidate the existing literature into three main hypotheses about the relative merits, for a resource-constrained regulator, of random (RAM) and competitive (CAM) audit mechanisms in the presence or absence of peer information about actual emissions. Testing the three hypotheses in a quasi-laboratory experiment (N = 131), we find supportive evidence that CAM always induce more truthful reporting than RAM. Moreover, we provide the empirical validation of the theoretical prediction that CAM can succeed in aligning actual emissions more closely with the social optimum in the presence of peer information when RAM cannot. Behavioral mechanisms prevent reaching the first-best outcome. | ||
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