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The Equity-Efficiency Trade-off in Environmental Policy: Evidence from Stated Preferences

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  • Simon Dietz
  • Giles Atkinson
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    Abstract

    The design of environmental policy raises several equity issues, in particular the distribution of benefits and costs. At the same time, it has often been argued that there is a trade-off in environmental policy between equity and efficiency, which brings these issues firmly to the attention of environmental economics. In this paper we use a simple choice experiment to elicit individual preferences over equity-efficiency trade-offs in the context of two environmental problems, local air pollution and global climate change. We find that equity matters to people as much as efficiency does in the design and delivery of environmental policy.

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    File URL: http://le.uwpress.org/cgi/reprint/86/3/423
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    Bibliographic Info

    Article provided by University of Wisconsin Press in its journal Land Economics.

    Volume (Year): 86 (2010)
    Issue (Month): 3 ()
    Pages:

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    Handle: RePEc:uwp:landec:v:86:y:2010:iii:1:p423-443

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    Web page: http://le.uwpress.org/

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    Cited by:
    1. Martin Stadelmann & ├ůsa Persson & Izabela Ratajczak-Juszko & Axel Michaelowa, 2014. "Equity and cost-effectiveness of multilateral adaptation finance: are they friends or foes?," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 14(2), pages 101-120, May.

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