Essays on Environmental Regulation, Management and Conflict

Abstract: This thesis consists of three different papers summarized as follows. In The political economy of environmental regulation, I study how enforcement of national environmental legislation differ across municipalities in Sweden depending on the local political situation. While the legislation is national, enforcement is decentralized. I find that municipalities where the Green Party joins the ruling political coalition issue more environmental fines than other municipalities. In pricing on the fish market I use Swedish data to study how size affects the price per kilo of fish for several species. In traditional fishery biomass models, fish stocks are treated as homogenous. New theoretical heterogeneous fishery models, where size is allowed to differ in a fish stock, have important implications for regulation, for example that it is optimal to regulate on numbers of fish instead of weight. However, prices in these models are assumed to be constant. My estimates can be used to shed some light on how prices change when the size composition of the catch changes. In my third and final chapter, Settlement under the threat of conflict - The cost of asymmetric information, I present a theoretical model where two players can divide a good peacefully or engage in a contest in order to obtain the entire good. I assume that one player's valuation of the good is private information and show how this affects the expected cost of the contest and thus the probability of peaceful settlement.