Assessing the Distributional Impacts of Transferable Pollution Permits: The Case of Phosphorus Pollution Management at a River Basin Scale
Although the initial allocation of pollution permits is neutral in terms of efficiency, it does have a significant impact on distributive equity. In this paper, we examine the two main categories of permit allocation rules, the distributive and the reductive, for controlling phosphorus pollution in a small catchment in South West England. Based on the premise that the regulatory choice compromises efficiency and equity, the main result of this paper is that an allocation of permits in proportion to the intensity of environmental preferences is a â€œwin-winâ€ choice. The reason is that it simultaneously achieves two goals. First, it is efficient (or cost-effective) since a permit system achieves a prespecified target at a minimum abatement cost, while second, it is the only allocation rule which reduces the income inequality of the baseline scenario.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tietenberg, Tom, 1998. "Ethical influences on the evolution of the US tradable permit approach to air pollution control," Ecological Economics, Elsevier, vol. 24(2-3), pages 241-257, February.
- Ridgley, Mark A, 1996. "Fair sharing of greenhouse gas burdens," Energy Policy, Elsevier, vol. 24(6), pages 517-529, June.
- Hanley, Nick D & Moffatt, Ian, 1993.
"Efficiency and Distributional Aspects of Market Mechanisms in the Control of Pollution: An Empirical Analysis,"
Scottish Journal of Political Economy,
Scottish Economic Society, vol. 40(1), pages 69-87, February.
- Nick Hanley & Ian Moffatt, 1992. "Efficiency and Distributional Aspects of Market Mechanisms in the Control of Pollution: An Empirical Analysis," Working Papers Series 92/2, University of Stirling, Division of Economics.
- Hanley Hanley, 1992. "Efficiency and Distributional Aspects of Market Mechanisms in the Control of Pollution: An Empirical analysis," Working Papers 842, Queen's University, Department of Economics.
- 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.
- 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.
- Rose, Adam & Stevens, Brandt, 1993. "The efficiency and equity of marketable permits for CO2 emissions," Resource and Energy Economics, Elsevier, vol. 15(1), pages 117-146, March.
- Peter Bohm & Bjorn Larsen, 1994. "Fairness in a tradeable-permit treaty for carbon emissions reductions in Europe and the former Soviet Union," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 4(3), pages 219-239, June.
- Kampas, Athanasios & White, Ben, 2003. "Selecting permit allocation rules for agricultural pollution control: a bargaining solution," Ecological Economics, Elsevier, vol. 47(2-3), pages 135-147, December.
- Ringius, Lasse & Torvanger, Asbjorn & Holtsmark, Bjart, 1998. "Can multi-criteria rules fairly distribute climate burdens?: OECD results from three burden sharing rules," Energy Policy, Elsevier, vol. 26(10), pages 777-793, August.
- CHANDER, Parkash & TULKENS, Henry, .
"Theoretical foundations of negotiations and cost sharing in transfrontier pollution problems,"
CORE Discussion Papers RP
983, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Chander, Parkash & Tulkens, Henry, 1992. "Theoretical foundations of negotiations and cost sharing in transfrontier pollution problems," European Economic Review, Elsevier, vol. 36(2-3), pages 388-399, April.
- Adam Rose & Zhong Zhang, 2004.
"Interregional burden-sharing of greenhouse gas mitigation in the United States,"
Mitigation and Adaptation Strategies for Global Change,
Springer, vol. 9(4), pages 477-500, October.
- Rose, Adam & Zhang, ZhongXiang, 2003. "Interregional burden-sharing of greenhouse gas mitigation in the United States," MPRA Paper 12893, University Library of Munich, Germany.
- Le Breton, Michel & Moyes, Patrick & Trannoy, Alain, 1996. "Inequality Reducing Properties of Composite Taxation," Journal of Economic Theory, Elsevier, vol. 69(1), pages 71-103, April.
- Atkinson, Scott & Tietenberg, Tom, 1991. "Market failure in incentive-based regulation: The case of emissions trading," Journal of Environmental Economics and Management, Elsevier, vol. 21(1), pages 17-31, July.
- Adam Rose & Gbadebo Oladosu, 2002. "Greenhouse Gas Reduction Policy in the United States: Identifying Winners and Losers in an Expanded Permit Trading System," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 1-18.
When requesting a correction, please mention this item's handle: RePEc:ags:aergaa:44115. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.