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Sharing a polluted river network through environmental taxes

Author

Listed:
  • María Gómez-Rúa

    () (Universidade de Vigo)

Abstract

Gómez-Rúa (2011, SERIEs) considers a river divided into n segments. In each segment there is exactly one agent, who releases some kind of residue into the water. An environmental authority must share the total cost of cleaning the river network among all the agents. In this paper we extend the results obtained there, to the context of a river network and so we propose several rules to distribute the total cleaning-cost among the agents. Furthermore, we provide axiomatic characterizations for them using properties based on water taxes. Besides we prove that one of the rules coincides with the weighted Shapley value of a game associated to the problem.

Suggested Citation

  • María Gómez-Rúa, 2012. "Sharing a polluted river network through environmental taxes," Economics Bulletin, AccessEcon, vol. 32(1), pages 992-1000.
  • Handle: RePEc:ebl:ecbull:eb-12-00133
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I1-P94.pdf
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    References listed on IDEAS

    as
    1. Chun, Youngsub, 1988. "The proportional solution for rights problems," Mathematical Social Sciences, Elsevier, vol. 15(3), pages 231-246, June.
    2. Alberto Gago & Xavier Labandeira & Fidel Picos & Miguel Rodríguez, 2006. "Environmental Taxes in Spain: A Missed Opportunity," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0609, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    3. Moulin, Herve & Sprumont, Yves, 2005. "On demand responsiveness in additive cost sharing," Journal of Economic Theory, Elsevier, vol. 125(1), pages 1-35, November.
    4. Bergantiños, Gustavo & Vidal-Puga, Juan, 2009. "Additivity in minimum cost spanning tree problems," Journal of Mathematical Economics, Elsevier, vol. 45(1-2), pages 38-42, January.
    5. Bergantinos, Gustavo & Vidal-Puga, Juan J., 2004. "Additive rules in bankruptcy problems and other related problems," Mathematical Social Sciences, Elsevier, vol. 47(1), pages 87-101, January.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    cost sharing; pollutant-cleaning cost; water taxes; river network.;

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D6 - Microeconomics - - Welfare Economics

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