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Grandfathering: Environmental Uses and Impacts

Author

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  • Maria Damon
  • Daniel H Cole
  • Elinor Ostrom
  • Thomas Sterner

Abstract

“Grandfathering” grants preferential treatment to existing resource users over new entrants based on prior use. Grandfathering is based on the concept of first-in-time or prior appropriation and has been applied to a broad range of environmental and resource issues. We synthesize legal, economic, and political science perspectives and find that grandfathering removes incentives for users to anticipate regulations with proactive abatement. We analyze institutions ranging from long-enduring common-property regimes to climate negotiations to identify how grandfathering can be detrimental to sustainability, but we also show that it can be the only possible mechanism for bringing stakeholders to the table.

Suggested Citation

  • Maria Damon & Daniel H Cole & Elinor Ostrom & Thomas Sterner, 2019. "Grandfathering: Environmental Uses and Impacts," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 13(1), pages 23-42.
    • Handle: RePEc:oup:renvpo:v:13:y:2019:i:1:p:23-42.
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    File URL: http://hdl.handle.net/10.1093/reep/rey017
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    Citations

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    Cited by:

    1. Karl W. Steininger & Keith Williges & Lukas H. Meyer & Florian Maczek & Keywan Riahi, 2022. "Sharing the effort of the European Green Deal among countries," Nature Communications, Nature, vol. 13(1), pages 1-13, December.
    2. Wang, Bangjun & Ji, Feng & Zheng, Jie & Xie, Kejia & Feng, Zhaolei, 2021. "Carbon emission reduction of coal-fired power supply chain enterprises under the revenue sharing contract: Perspective of coordination game," Energy Economics, Elsevier, vol. 102(C).
    3. Bialek, Sylwia & Gregory, Jack & Revesz, Richard L., 2022. "Still your grandfather's boiler: Estimating the effects of the Clean Air Act's grandfathering provisions," Working Papers 05/2022, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung.
    4. De Borger, Bruno & Glazer, Amihai & Proost, Stef, 2022. "Strategic behavior under tradeable driving permits and congestion tolls: A political economy model," Journal of Urban Economics, Elsevier, vol. 128(C).
    5. Fleitas, Sebastian & Gowrisankaran, Gautam & Lo Sasso, Anthony, 2022. "Incumbent regulation and adverse selection: You can keep your health plan, but at what cost?," Journal of Public Economics, Elsevier, vol. 205(C).
    6. Gregor Zoettl, 2021. "Emission trading systems and the optimal technology mix," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 12(2), pages 281-327, June.
    7. Bruno De Borger & Amihai Glazer & Stef Proost, 2021. "Rational Drivers and the Choice Between Congestion Tolls and Tradeable Permits: A Political Economy Model," CESifo Working Paper Series 8821, CESifo.
    8. Alfred Endres & Tim Friehe & Bianca Rundshagen, 2020. "Diffusion and adoption of advanced emission abatement technology induced by permit trading," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 22(5), pages 1313-1337, September.
    9. Marc David Davidson, 2021. "How Fairness Principles in the Climate Debate Relate to Theories of Distributive Justice," Sustainability, MDPI, vol. 13(13), pages 1-16, June.

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