refers to the concept of information asymmetry between principal (e.g. state) and agent (e.g. farmer) which can lower environmental effectiveness of schemes (see also adverse selection). This could be the case when land managers have no intention of delivering their side of the contract. Peer-pressure can be a solution (Franks, 2011).

Synonym: Opportunistic behaviour or hidden action


Franks, J. (2011) The collective provision of environmental goods: a discussion of contractual issues, Journal of Environmental Planning and Management, 54:5, 637-660, DOI: 10.1080/09640568.2010.526380