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On the redistributive impact of privitazing a resource under imperfect enforcement

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  • Ambec, S.
  • Hotte, L.

Abstract

We consider the redistributive effects of privatizing a resource previously exploited under free access. We assume that illegal extraction is punished but that the sanction is bounded by individual's wealth. First, we show that a segment of intermediate-wea lth individuals is the most adversely affected from the regime change, while the poorest segment is not only less severely affected, but may actually gain from it. Next, we show how the authorities may prefer to choose an intermediate enforcement level in order to maximize the political acceptability of the regime switch among the local community.

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File URL: http://www.grenoble.inra.fr/Docs/pub/A2003/gael2003-02.pdf
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Bibliographic Info

Paper provided by Grenoble Applied Economics Laboratory (GAEL) in its series Working Papers with number 200302.

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Date of creation: 2003
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Handle: RePEc:gbl:wpaper:200302

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Related research

Keywords: PROPERTY RIGHTS; ENFORCEMENT; WEALTH DISTRIBUTION; NATURAL RESOURCES; ILLEGAL EXTRACTION;

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Cited by:
  1. Ambec, Stefan & Sebi, Carine, 2010. "The distributional impact of common-pool resource regulations," LERNA Working Papers 10.19.325, LERNA, University of Toulouse.
  2. Ostrom, Elinor (Ed.) & Schlüter, Achim (Ed.), 2007. "The challenge of self-governance in complex, globalizing economies: Collection of revised papers of a PhD seminar," Working Papers 47-2007, University of Freiburg, Chair of Forestry Economics and Planning.
  3. Hotte, Louis & McFerrin, Randy & Wills, Douglas, 2013. "On the dual nature of weak property rights," Resource and Energy Economics, Elsevier, vol. 35(4), pages 659-678.

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