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Donning Coase‐coloured glasses: a property rights view of natural resource economics

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  • Terry L. Anderson

Abstract

Economic analysis of natural resource and environmental issues inappropriately places too much emphasis on Pigouvian externalities and too little on Coasean property rights and transaction costs. The crucial questions are who has what property rights and what are the transaction costs associated with these property rights. Asserting an externality implicitly assumes a set of property rights and hence a distribution of the social costs, but it is precisely a lack of property rights that allows decision makers to ignore social costs. By viewing natural resource and environmental problems through a Coasean lens, we better focus our attention on how property rights evolve, how they influence transaction costs, and how those transaction costs affect the potential for bargaining to minimise social costs.

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  • Terry L. Anderson, 2004. "Donning Coase‐coloured glasses: a property rights view of natural resource economics," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(3), pages 445-462, September.
    • Handle: RePEc:bla:ajarec:v:48:y:2004:i:3:p:445-462
    DOI: 10.1111/j.1467-8489.2004.00257.x
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    3. Terry L. Anderson, 2015. "If Hayek and Coase Were Environmentalists: Linking Economics and Ecology," Economics Working Papers 15102, Hoover Institution, Stanford University.
    4. Douadia Bougherara & Gilles Grolleau & Naoufel Mzoughi, 2009. "The ‘make or buy’ decision in private environmental transactions," European Journal of Law and Economics, Springer, vol. 27(1), pages 79-99, February.
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    6. Nogueira, Leticia & Wigger, Karin & Jolly, Suyash, 2021. "Common‐pool Resources and Governance in Sustainability Transitions," MPRA Paper 111721, University Library of Munich, Germany.
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    8. Phillip Hone & Iain Fraser, 2004. "Resource Management and Duty of Care," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 11(3), pages 195-209.
    9. Beare, Stephen & Newby, Jonathan C., 2005. "Incomplete Markets, Excluded Goods and Natural Resource Management," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137785, Australian Agricultural and Resource Economics Society.
    10. Farley, Joshua & Costanza, Robert & Flomenhoft, Gary & Kirk, Daniel, 2015. "The Vermont Common Assets Trust: An institution for sustainable, just and efficient resource allocation," Ecological Economics, Elsevier, vol. 109(C), pages 71-79.
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    13. Windle, Jill & Rolfe, John & Whitten, Stuart M. & Alam, Khorshed & Street, Deborah, 2005. "Using Choice Modelling to establish the supply of riparian services and the potential for a water quality trading scheme in Central Queensland," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 139298, Australian Agricultural and Resource Economics Society.
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