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Threatened Species as Public Goods and Public Bads

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  • Göran Bostedt

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Abstract

This paper discusses Pareto efficient allocations of an environmental commodity, which is both a public good and a public bad, with an application to the Scandinavian problem of conserving wild predators that are killing semi-domesticated reindeer. The paper begins by briefly outlining this conflict. This is followed by a theoretical analysis employing a diagrammatic tool called the Kolm triangle, which is an analogue of an Edgeworth box in an economy with a public good. Bargaining, Pareto improving reallocations and the shape of the Pareto set are discussed, using a simple model, where one of the agents is involountarily contributing to a public good. The paper concludes with an analysis of income-loss compensations and incentives for illegal hunting of predators. Copyright Kluwer Academic Publishers 1999

Suggested Citation

  • Göran Bostedt, 1999. "Threatened Species as Public Goods and Public Bads," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 13(1), pages 59-73, January.
  • Handle: RePEc:kap:enreec:v:13:y:1999:i:1:p:59-73
    DOI: 10.1023/A:1008201401068
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    References listed on IDEAS

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    1. Montgomery Claire A. & Brown Jr. , Gardner M. & Adams Darius M., 1994. "The Marginal Cost of Species Preservation: The Northern Spotted Owl," Journal of Environmental Economics and Management, Elsevier, vol. 26(2), pages 111-128, March.
    2. Eduardo Ley, 1996. "On the private provision of public goods: a diagrammatic exposition," Investigaciones Economicas, Fundación SEPI, vol. 20(1), pages 105-123, January.
    3. Daniel A. Haqen & James W. Vincent & Patrick G. Welle, 1992. "Benefits Of Preserving Old-Growth Forests And The Spotted Owl," Contemporary Economic Policy, Western Economic Association International, vol. 10(2), pages 13-26, April.
    4. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, March.
    5. Schlesinger, Harris, 1989. "On the Analytics of Pure Public Good Provision," Public Finance = Finances publiques, , vol. 44(1), pages 102-109.
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    Cited by:

    1. Richard Cornes & Dirk Rübbelke, 2012. "On the Private Provision of Contentious Public Characteristics," ANU Working Papers in Economics and Econometrics 2012-577, Australian National University, College of Business and Economics, School of Economics.
    2. R. Martínez-Espiñeira, 2007. "‘Adopt a Hypothetical Pup’: A Count Data Approach to the Valuation of Wildlife," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(2), pages 335-360, June.

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