Threatened Species as Public Goods and Public Bads
AbstractThis paper discusses Pareto efficient allocations of an environmental commodity, which is both a public good and a public bad, with an application to the Scandinavian problem of conserving wild predators that are killing semi-domesticated reindeer. The paper begins by briefly outlining this conflict. This is followed by a theoretical analysis employing a diagrammatic tool called the Kolm triangle, which is an analogue of an Edgeworth box in an economy with a public good. Bargaining, Pareto improving reallocations and the shape of the Pareto set are discussed, using a simple model, where one of the agents is involountarily contributing to a public good. The paper concludes with an analysis of income-loss compensations and incentives for illegal hunting of predators. Copyright Kluwer Academic Publishers 1999
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Bibliographic InfoArticle provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.
Volume (Year): 13 (1999)
Issue (Month): 1 (January)
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Web page: http://www.springerlink.com/link.asp?id=100263
bargaining; compensations; illegal hunting; Kolm triangle; public goods' reindeer; wild predators;
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