The Economic Theory of Nuisance Law and Implications for Environmental Regulation
28 Pages Posted: 24 Mar 2008 Last revised: 15 May 2008
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.
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
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