The distributional impact of common-pool resource regulations
AbstractPurpose â Regulating common-pool resources is welfare enhancing for society but not necessarily for all users who may therefore oppose regulations. The purpose of this paper is to examine the short-term impact of common-pool resource regulations on welfare distribution. Design/methodology/approach â The authors model a game of common-pool resource extraction among heterogeneous users. Findings â It was found that market-based regulations such as fees and subsidies or tradable quotas achieve a higher reduction of extraction from free-access than individual quotas with the same proportion of better-off users. Also, they make more users better-off for the same resource preservation. Originality/value â The quota regulation has attractive fairness properties: it reduces inequality while still rewarding the more efficient users. JEL classification: H23, Q22, Q28
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Bibliographic InfoPaper provided by LERNA, University of Toulouse in its series LERNA Working Papers with number 10.19.325.
Date of creation: Dec 2010
Date of revision:
Other versions of this item:
- Stefan Ambec & Carine Sebi, 2011. "The distributional impact of common-pool resource regulations," Indian Growth and Development Review, Emerald Group Publishing, vol. 4(2), pages 123-141, September.
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-01-03 (All new papers)
- NEP-ENV-2011-01-03 (Environmental Economics)
- NEP-REG-2011-01-03 (Regulation)
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