Ley de energía para el campo: análisis de incentivos y propuestas de reforma
Abstract
This paper presents an economic analysis of the Energy Act for Rural Areas (LEC) in order to examine how its design affects the markets and create an informational structure which favors rent-seeking activities. It is shown through simple models of partial equilibrium and agent-principal that stimulus tariffs of agricultural bombing distort Mexican land production relations and, in place of favoring productivity, stimulate both artificial increases in agricultural energy demand as aquifer overexploitation. Three options for amendment that would improve efficiency and decrease rent-seeking behavior are proposed.
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