This analysis extends previous work on green insurance by proposing a mechanism that offers a stronger adoption incentive and is applicable to heterogeneous populations Forearm Crutches and non-binary adoption decisions.Endogenous learning about the new technology is incorporated, and empirically calibrated simulation results are presented for the case of reduced-phosphorus dairy Lip Kit diets.Results show that the mechanism has a significant impact on behavior and may incur no net cost for the regulator when an insurance premium is charged.
Conditions under which a green payment mechanism may be preferable to green insurance also are discussed.