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The distributional impact of common‐pool resource regulations

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  • Stefan Ambec
  • Carine Sebi

Abstract

Purpose - 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 - The authors model a game of common‐pool resource extraction among heterogeneous users. Findings - 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 - The quota regulation has attractive fairness properties: it reduces inequality while still rewarding the more efficient users.

Suggested Citation

  • Stefan Ambec & Carine Sebi, 2011. "The distributional impact of common‐pool resource regulations," Indian Growth and Development Review, Emerald Group Publishing Limited, vol. 4(2), pages 123-141, September.
    • Handle: RePEc:eme:igdrpp:v:4:y:2011:i:2:p:123-141
    DOI: 10.1108/17538251111172032
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    References listed on IDEAS

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    1. Baland, Jean-Marie & Platteau, Jean-Philippe, 2003. "Economics of common property management regimes," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 1, chapter 4, pages 127-190, Elsevier.
    2. Ambec, Stefan & Hotte, Louis, 2006. "On the redistributive impact of privatizing a resource under imperfect enforcement," Environment and Development Economics, Cambridge University Press, vol. 11(6), pages 677-696, December.
    3. Weitzman, Martin L., 1974. "Free access vs private ownership as alternative systems for managing common property," Journal of Economic Theory, Elsevier, vol. 8(2), pages 225-234, June.
    4. Baland, Jean-Marie & Francois, Patrick, 2005. "Commons as insurance and the welfare impact of privatization," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 211-231, February.
    5. Jeff Dayton-Johnson & Pranab Bardhan, 2002. "Inequality And Conservation On The Local Commons: A Theoretical Exercise," Economic Journal, Royal Economic Society, vol. 112(481), pages 577-602, July.
    6. Sethi, Rajiv & Somanathan, E, 1996. "The Evolution of Social Norms in Common Property Resource Use," American Economic Review, American Economic Association, vol. 86(4), pages 766-788, September.
    7. Fleurbaey, Marc, 2012. "Fairness, Responsibility, and Welfare," OUP Catalogue, Oxford University Press, number 9780199653591.
    8. Robert A. Androkovich & Kenneth R. Stollery, 1991. "Tax Versus Quota Regulation: A Stochastic Model of the Fishery," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 300-308.
    9. Clark, Colin W. & Munro, Gordon R. & Sumaila, Ussif Rashid, 2005. "Subsidies, buybacks, and sustainable fisheries," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 47-58, July.
    10. Burton, Peter S., 2003. "Community enforcement of fisheries effort restrictions," Journal of Environmental Economics and Management, Elsevier, vol. 45(2, Supple), pages 474-491, March.
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    Cited by:

    1. Stefan Ambec & Alexis Garapin & Laurent Muller & Arnaud Reynaud & Carine Sebi, 2014. "Comparing Regulations to Protect the Commons: An Experimental Investigation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(2), pages 219-244, June.
    2. Adams, Samuel & Atsu, Francis, 2015. "Assessing the distributional effects of regulation in developing countries," Journal of Policy Modeling, Elsevier, vol. 37(5), pages 713-725.

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