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Population Policy through Tradable Procreation Entitlements

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Author Info
David, DE LA CROIX (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Economics)
Axel, GOSSERIES (Chaire dÕEthique, ESPO, UCL)

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Abstract

Tradable 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 with both 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 decompose the schemeÕs impact on redistribution into three effects, one of them, the tradability effect, entails the following : with procreation exemptions or expensive enough 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 to countries in proportion to exissting 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 to control population without necessarily leading to problematic distributive impact, especially at the global level.

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Paper provided by Université catholique de Louvain, Département des Sciences Economiques in its series Discussion Papers (ECON - Département des Sciences Economiques) with number 2006040.

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Date of creation: 01 Oct 2006
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Handle: RePEc:ctl:louvec:2006040

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Related research
Keywords: Tradable permits; Population control; Pronatalist policy; Income inequality; Differential fertility; Grandfathering;

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Find related papers by JEL classification:
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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References listed on IDEAS
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  1. Mikhail Golosov & Larry E. Jones, 2004. "Efficiency with Endogenous Population Growth," 2004 Meeting Papers 8, Society for Economic Dynamics. [Downloadable!]
    Other versions:
  2. David de la Croix & Matthias Doepke, 2001. "Inequality and Growth: Why Differential Fertility Matters," UCLA Economics Working Papers 803, UCLA Department of Economics. [Downloadable!]
    Other versions:
  3. Joskow, Paul L & Schmalensee, Richard & Bailey, Elizabeth M, 1998. "The Market for Sulfur Dioxide Emissions," American Economic Review, American Economic Association, vol. 88(4), pages 669-85, September. [Downloadable!] (restricted)
  4. Susan Greenhalgh, 2003. "Science, Modernity, and the Making of China's One-Child Policy," Population and Development Review, The Population Council, Inc., vol. 29(2), pages 163-196. [Downloadable!] (restricted)
  5. Kremer, Michael & Chen, Daniel L, 2002. " Income Distribution Dynamics with Endogenous Fertility," Journal of Economic Growth, Springer, vol. 7(3), pages 227-58, September. [Downloadable!] (restricted)
  6. Philippe Michel & Bertrand Wigniolle, 2007. "On Efficient Child Making," Economic Theory, Springer, vol. 31(2), pages 307-326, May. [Downloadable!] (restricted)
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  7. Gary S. Becker & James S. Duesenberry & Bernard Okun, 1960. "An Economic Analysis of Fertility," NBER Chapters, in: Demographic and Economic Change in Developed Countries, pages 225-256 National Bureau of Economic Research, Inc. [Downloadable!]
  8. Bohringer, Christoph & Lange, Andreas, 2005. "On the design of optimal grandfathering schemes for emission allowances," European Economic Review, Elsevier, vol. 49(8), pages 2041-2055, November. [Downloadable!] (restricted)
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  9. Michael Kremer & Daniel Chen, 2000. "Income-distribution Dynamics with Endogenous Fertility," NBER Working Papers 7530, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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