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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. Kremer, Michael & Chen, Daniel L, 2002. " Income Distribution Dynamics with Endogenous Fertility," Journal of Economic Growth, Springer, Springer, vol. 7(3), pages 227-58, September.
  2. Böhringer, Christoph & Lange, Andreas, 2003. "On the Design of Optimal Grandfathering Schemes for Emission Allowances," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 03-08, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  3. David de la Croix & Matthias Doepke, 2001. "Inequality and Growth: Why Differential Fertility Matters," UCLA Economics Working Papers, UCLA Department of Economics 803, UCLA Department of Economics.
  4. Gary S. Becker, 1960. "An Economic Analysis of Fertility," NBER Chapters, National Bureau of Economic Research, Inc, in: Demographic and Economic Change in Developed Countries, pages 209-240 National Bureau of Economic Research, Inc.
  5. Joskow, Paul L & Schmalensee, Richard & Bailey, Elizabeth M, 1998. "The Market for Sulfur Dioxide Emissions," American Economic Review, American Economic Association, American Economic Association, vol. 88(4), pages 669-85, September.
  6. Mikhail Golosov & Larry E. Jones, 2004. "Efficiency with Endogenous Population Growth," 2004 Meeting Papers, Society for Economic Dynamics 8, Society for Economic Dynamics.
  7. Philippe Michel & Bertrand Wigniolle, 2007. "On Efficient Child Making," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00185259, HAL.
  8. Susan Greenhalgh, 2003. "Science, Modernity, and the Making of China's One-Child Policy," Population and Development Review, The Population Council, Inc., The Population Council, Inc., vol. 29(2), pages 163-196.
  9. 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, National Bureau of Economic Research, Inc, number univ60-2.
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Cited by:
  1. David de la Croix & Axel Gosseries, 2011. "The Natalist Bias of Pollution Control," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales), Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) 2011020, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  2. Frédéric DOCQUIER & Marco DELOGU & Joël MACHADO, 2014. "The dynamic implications of liberalizing global migration," Working Papers, FERDI P88, FERDI.
  3. 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).
  4. Schoonbroodt, Alice & Tertilt, Michèle, 2014. "Property rights and efficiency in OLG models with endogenous fertility," Journal of Economic Theory, Elsevier, Elsevier, vol. 150(C), pages 551-582.
  5. 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, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(3), pages 799-835, 08.

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