Question

Policy Enforcement: The text states that stiff penalties (sanctions) for environmental violators can be much more complicated than the simple economic model suggests (which simply assumes: Higher the penalty, greater the deterrence!).     Explain.

Answer 1

This is a question of Economic approach to optimum penalties. This approach measures the welfare effect of the act being undertaken and penalties been imposed and ignores the Marginal Utility of money among people.
While we are calculating the penalties to be imposed we should also talk about using of the level of crime/mistake and also time as the unit to measure in determining the optimum penalties measuring the level of crime or mistake being done and then getting it compared in terms of the level of crime, particular time duration instead of amount.
first and foremost why we are talking about this theory we should also make a proper sense of the two most important questions that is which all acts should be punished and to what extent. To find the answer of this we should also defined the crime, And then we have to decide the extent of punishment.

Now if I quote the question given which says that a stiff penalties for environmental violators can be much more complicated then the simple economic model which assumes higher the penalty greater the difference itself expense that if I impose a high penalty on those who are violating the laws, it may definitely reduce the number of violations as people who won't be having much amount to bear the expense.

Well if I talk about accurate compensation it is the stiff penalties in terms of money or say amount involved that leaves the victim in different between the injury with compensation and non-injury