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Tradable Land-Use Rights for Cumulative Environmental Effects Management

  • Marian Weber
  • Wiktor Adamowicz

In this paper we introduce tradable land-use rights (TLRs) as a potential economic instrument for cumulative environmental effects management on public lands. TLRs allow the regulator to implement thresholds for habitat loss while maximizing the benefits of development. By allowing economic criteria to "drive" the configuration of development activities in a region, the risk of biodiversity loss may be reduced for a given cost. Alberta's Boreal Forest Natural Region is used as a case study for examining TLRs. Implementation issues, particularly those related to spatial heterogeneity and ecosystem dynamics, are discussed.

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Article provided by University of Toronto Press in its journal Canadian Public Policy.

Volume (Year): 28 (2002)
Issue (Month): 4 (December)
Pages: 581-595

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Handle: RePEc:cpp:issued:v:28:y:2002:i:4:p:581-595
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  1. Theodore Panayotou, 1994. "Conservation of biodiversity and economic development: The concept of transferable development rights," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 4(1), pages 91-110, February.
  2. McGartland, Albert M. & Oates, Wallace E., 1985. "Marketable permits for the prevention of environmental deterioration," Journal of Environmental Economics and Management, Elsevier, vol. 12(3), pages 207-228, September.
  3. Young, Michael D., 1999. "The design of fishing-right systems -- the NSW experience," Ecological Economics, Elsevier, vol. 31(2), pages 305-316, November.
  4. Hahn, Robert W., 1982. "Market Power and Transferable Property Rights," Working Papers 402, California Institute of Technology, Division of the Humanities and Social Sciences.
  5. John Ledyard & Kristin Szakaly-Moore, 1993. "Designing Organizations for Trading Pollution Rights," Experimental 9307001, EconWPA, revised 28 Jul 1993.
  6. Hahn, Robert W. & May, Carol A., 1994. "The behavior of the allowance market: Theory and evidence," The Electricity Journal, Elsevier, vol. 7(2), pages 28-37, March.
  7. Robert N. Stavins, 1998. "What Can We Learn from the Grand Policy Experiment? Lessons from SO2 Allowance Trading," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 69-88, Summer.
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