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Does Might Make Right? An Experiment on Assigning Property Rights

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  • Czap, Hans J.
  • Czap, Natalia V.
  • Burbach, Mark E.
  • Lynne, Gary D.

Abstract

This paper investigates the role of property rights in environmental decisions and choices regarding the distribution of income in a downstream water pollution problem. The results confirm that who owns the property rights is a significant determinant of these decisions. More specifically, under certain conditions a property rights owner who suffers the consequences of negative externalities acts, on average, more environmentally friendly than a property rights owner who causes such negative externality. Similarly, when it comes to the distribution of income, the property rights owners who cause negative externalities allocate on average a larger share of the income to themselves.

Suggested Citation

  • Czap, Hans J. & Czap, Natalia V. & Burbach, Mark E. & Lynne, Gary D., 2018. "Does Might Make Right? An Experiment on Assigning Property Rights," Ecological Economics, Elsevier, vol. 150(C), pages 229-240.
    • Handle: RePEc:eee:ecolec:v:150:y:2018:i:c:p:229-240
    DOI: 10.1016/j.ecolecon.2018.03.007
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