The Economic Theory of Nuisance Law and Implications for Environmental Regulation

Abstract:     
I explore the economic structure of nuisance law as a mechanism for regulating environmental interferences and propose a modernized enforcement regime. The modern regime would retain public enforcement primarily in identifying environmental harms and as a backstop for private enforcement.

Number of Pages in PDF File: 28

Keywords: economic structure of nuisance law, nuisance law, environmental regulation, command and control rules, liability rules, public enforcement, private enforcement, decentralization inefficiencies, agency cost problems, cost-benefit balancing of the common law

JEL Classification: K00, K13, K32, K41

Accepted Paper Series