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Contracting for Environmental Property Rights: The Case of Vittel

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Author Info
CHRISTOPHE DEPRES
GILLES GROLLEAU
NAOUFEL MZOUGHI

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Abstract

Based on a real case of contracting for environmental property rights, we explore several implications of Coase's insights. The case study adds empirical content to basic transaction costs concepts by analysing the design and implementation of a contractual arrangement between a pollutee-a bottler of mineral water-and several polluting farmers. We analyse the bargaining between the two parties to determine how transaction cost issues (valuation disputes, bilateral monopoly conditions and third-party effects) were overcome and how they succeeded in contracting for environmental property rights. We compare the Vittel case with other similar cases to draw lessons for environmental rights negotiations. Copyright (c) The London School of Economics and Political Science 2007.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-0335.2007.00620.x
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Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 75 (2008)
Issue (Month): 299 (08)
Pages: 412-434
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Handle: RePEc:bla:econom:v:75:y:2008:i:299:p:412-434

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Gary D. Libecap, 2005. "Chinatown: Transaction Costs in Water Rights Exchanges. The Owens Valley Transfer to Los Angeles," ICER Working Papers 16-2005, ICER - International Centre for Economic Research. [Downloadable!]
  2. Jung, Chulho & Krutilla, Kerry & Kip Viscusi, W. & Boyd, Roy, 1995. "The coase theorem in rent-seeking society," International Review of Law and Economics, Elsevier, vol. 15(3), pages 259-268, September. [Downloadable!] (restricted)
  3. Coase, R H, 1974. "The Lighthouse in Economics," Journal of Law & Economics, University of Chicago Press, vol. 17(2), pages 357-76, October.
  4. Van Zandt, David E, 1993. "The Lessons of the Lighthouse: "Government" or "Private" Provision of Goods," Journal of Legal Studies, University of Chicago Press, vol. 22(1), pages 47-72, January.
  5. Demsetz, Harold, 1969. "Information and Efficiency: Another Viewpoint," Journal of Law & Economics, University of Chicago Press, vol. 12(1), pages 1-22, April.
  6. Dulbecco, Philippe, 2003. " The Dynamics of the Institutional Change and the Market Economy: Understanding Contemporaneous Market Development Processes," The Review of Austrian Economics, Springer, vol. 16(2-3), pages 231-51, September. [Downloadable!] (restricted)
  7. Edward L. Glaeser & David I. Laibson & José A. Scheinkman & Christine L. Soutter, 2000. "Measuring Trust," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 811-846, August. [Downloadable!] (restricted)
  8. Gafsi, M. & Brossier, J., 1997. "Farm management and protection of natural resources: Analysis of adaptation process and dependence relationships," Agricultural Systems, Elsevier, vol. 55(1), pages 71-97, September. [Downloadable!] (restricted)
  9. Dahlman, Carl J, 1979. "The Problem of Externality," Journal of Law & Economics, University of Chicago Press, vol. 22(1), pages 141-62, April.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Schleyer, Christian & Theesfeld, Insa & Hagedorn, Konrad & Aznar, Olivier & Callois, Jean-Marc & Verburg, Rene & Yelkouni, Martin & Olsson, Johanna Alkan, 2007. "Approach towards an operational tool to apply institutional analysis for the assessment of policy feasibility within SEAMLESS-IF," Reports 9295, SEAMLESS: System for Environmental and Agricultural Modelling, Linking European Science and Society. [Downloadable!]
  2. Joël Houdet & Michel Trommetter & Jacques Weber, 2009. "Changing business perceptions regarding biodiversity: from impact mitigation towards new strategies and practices," Working Papers hal-00412875_v1, HAL. [Downloadable!]
  3. Douadia Bougherara & Gilles Grolleau & Naoufel Mzoughi, 2009. "The ‘make or buy’ decision in private environmental transactions," European Journal of Law and Economics, Springer, vol. 27(1), pages 79-99, February. [Downloadable!] (restricted)
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