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Population Policy through Tradable Procreation Entitlements

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  • David de la Croix

    ()
    (Department of Economics and CORE, Université Catholique de Louvain)

  • Axel Gosseries

    ()
    (FNRS & Hoover Chair, Université Catholique de Louvain)

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 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 to countries 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 to control population without necessarily leading to problematic distributive impact, especially at the global level.

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File URL: http://www.ecineq.org/milano/WP/ECINEQ2007-62.pdf
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Bibliographic Info

Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 62.

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Length: 43 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2007-62

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

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  1. George B. Roberts, Chairman, Universities-National Bureau Committee for Economic Research, 1960. "Demographic and Economic Change in Developed Countries," NBER Books, National Bureau of Economic Research, Inc, number univ60-2.
  2. Michael Kremer & Daniel Chen, 2000. "Income-distribution Dynamics with Endogenous Fertility," NBER Working Papers 7530, National Bureau of Economic Research, Inc.
  3. Böhringer, Christoph & Lange, Andreas, 2003. "On the Design of Optimal Grandfathering Schemes for Emission Allowances," ZEW Discussion Papers 03-08, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. David de la Croix & Matthias Doepke, 2001. "Inequality and Growth: Why Differential Fertility Matters," UCLA Economics Working Papers 803, UCLA Department of Economics.
  5. Gary S. Becker, 1960. "An Economic Analysis of Fertility," NBER Chapters, in: Demographic and Economic Change in Developed Countries, pages 209-240 National Bureau of Economic Research, Inc.
  6. 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.
  7. Mikhail Golosov & Larry E Jones & Michèle Tertilt, 2003. "Effciency with Endogenous Population Growth," Levine's Working Paper Archive 666156000000000310, David K. Levine.
  8. Philippe Michel & Bertrand Wigniolle, 2007. "On Efficient Child Making," Economic Theory, Springer, vol. 31(2), pages 307-326, May.
  9. 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.
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Cited by:
  1. Schoonbroodt, Alice & Tertilt, Michèle, 2014. "Property rights and efficiency in OLG models with endogenous fertility," Journal of Economic Theory, Elsevier, vol. 150(C), pages 551-582.
  2. de la Croix, David & Gosseries, Axel, 2012. "The natalist bias of pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 63(2), pages 271-287.
  3. C. Simon Fan & Oded Stark, 2008. "Looking At The "Population Problem" Through The Prism Of Heterogeneity: Welfare And Policy Analyses," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(3), pages 799-835, 08.
  4. Frédéric DOCQUIER & Marco DELOGU & Joël MACHADO, 2014. "The dynamic implications of liberalizing global migration," Working Papers P88, FERDI.
  5. Bertrand CRETTEZ, 2011. "Is Selling Immigration Rights Politically Sustainable ?," Discussion Papers (REL - Recherches Economiques de Louvain) 2011042, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

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