Aisbett, Emma; Karp, Larry; McAusland, Carol
International investment agreements allow investors to bring compensation claims when their
investments are hurt by new regulations. This requirement that host governments compensate for
indirect expropriation helps solve post-investment moral hazard problems such as hold-ups,
thereby helping to prevent inefficient over-regulation and encouraging foreign investment.
However, when the social or environmental harm of a project is uncertain pre-investment,
compensation requirements can...[Show more]
Items in Open Research are protected by copyright, with all rights reserved, unless otherwise indicated.