Population policy through tradable procreation entitlements
AbstractTradable permits are now widely used to control pollution. We investigate the implications of setting up such a system in another area population control, either domestically or at the global level. We first generalize the framework withboth tradable procreation allowances and tradable procreation exemptions, in order to tackle both over- and under-population problems. The implications of procreation rights for income inequality and education are contrasted. We decomposethe scheme's impact on redistribution into three effects, one of them, the tradability effect, entails the following: with procreation exemptions or expensive enough procreation allowances, redistribution benefits the poor. In contrast, cheap procreation allowances redistribute resources to the rich. As far as human capital is concerned, natalist policy worsens the average education level of the next generation, while population control enhances it. If procreation rights are granted tocountries in proportion to existing fertility levels (grandfathering) instead of being allocated equally, population control can be made even more redistributive. Our exploratory analysis suggests that procreation entitlements offer a promising tool tocontrol population without necessarily leading to problematic distributive impact, especially at the global level.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2006081.
Date of creation: 00 Oct 2006
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tradable permits; population control; pronatalist policy; income inequality; differential fertility; grandfathering;
Other versions of this item:
- David de la Croix & Axel Gosseries, 2009. "Population Policy Through Tradable Procreation Entitlements," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(2), pages 507-542, 05.
- David de la Croix & Axel Gosseries, 2007. "Population Policy through Tradable Procreation Entitlements," Working Papers 62, ECINEQ, Society for the Study of Economic Inequality.
- David, DE LA CROIX & Axel, GOSSERIES, 2006. "Population Policy through Tradable Procreation Entitlements," Discussion Papers (ECON - DÃ©partement des Sciences Economiques) 2006040, Université catholique de Louvain, Département des Sciences Economiques.
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
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