The Regulation of Environmental Innovations

摘要

We offer mechanisms to regulate environmental R&D projects that are intertemporal and indivisible and involve high monitoring cost. Screening and contracting the R&D performer are based solely on the project completion time. When the project duration is ex ante uncertain to all parties (including the performing firm), the mechanism is formulated in terms of a completion time limit. The mechanism extends to other intertemporal public projects as well as to principal-agent settings with dynamic agent's tasks.