Threatened Species as Public Goods and Public Bads
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
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Volume (Year): 13 (1999)
Issue (Month): 1 (January)
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References listed on IDEAS
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- 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, 04.
- Schlesinger, Harris, 1989. "On the Analytics of Pure Public Good Provision," Public Finance = Finances publiques, , vol. 44(1), pages 102-09.
- 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.
- Cornes,Richard & Sandler,Todd, 1996. "The Theory of Externalities, Public Goods, and Club Goods," Cambridge Books, Cambridge University Press, number 9780521477185.
- Eduardo Ley, 1995.
"On the Private Provision of Public Goods: A Diagrammatic Exposition,"
9503001, EconWPA, revised 15 Jul 1995.
- Eduardo Ley, 1996. "On the private provision of public goods: a diagrammatic exposition," Investigaciones Economicas, Fundación SEPI, vol. 20(1), pages 105-123, January.
- Ley, E., 1993. "On the Private Provision of Public Goods: A Diagrammatic Exposition," Papers 93-27, Michigan - Center for Research on Economic & Social Theory.
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