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Quotas, Alternative Technologies and Immiserization

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  • David A. Hennessy

Abstract

This paper studies the relationships between technical change and welfare under a production quota regime. The conditions for producer impoverishment and quota owner impoverishment under technical change are identified. Whether the relative efficiency of a marketable quota regime is robust to the choice of technologies is also considered, as is the immiserization motive for banning a technology. The paper demonstrates that two or more technologies may exist in equilibrium and that the adoption of a technology may depend on the marketability of quota.
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Suggested Citation

  • David A. Hennessy, 1995. "Quotas, Alternative Technologies and Immiserization," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 43(2), pages 203-208, July.
    • Handle: RePEc:bla:canjag:v:43:y:1995:i:2:p:203-208
    DOI: j.1744-7976.1995.tb00118.x
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