Agri-environmental policy and moral hazard under multiple sources of uncertainty
研究了农业环境政策中，农民面临多重不确定性时，风险规避对道德风险问题的影响，发现风险规避可能缓解也可能加剧问题，取决于生产实践变化是否增加产出风险。
Risk aversion has been considered a factor in mitigating the moral hazard problem in agri-environmental policy. If farmers face multiple sources of uncertainty, however, risk aversion could contribute to the problem. Focusing on a required reduction in the use of a potentially damaging input under an agri-environmental scheme, we address the implications of risk aversion for a farmer's decision on compliance. We show that risk aversion can indeed mitigate the moral hazard problem, but, if a required change in production practices increases output risk, the impact of risk aversion is ambiguous.