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Sharing a polluted river through environmental taxes

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  • María Gómez-Rúa

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Abstract

n agents located along a river generate residues that then require cleaning to return the river to its natural state, which entails some cost. We propose several rules to distribute the total pollutant-cleaning cost among all the agents. We provide axiomatic characterizations using properties based on water taxes. Moreover, we prove that one of the rules coincides with the weighted Shapley value of a game associated with the problem. Copyright The Author(s) 2013

Suggested Citation

  • María Gómez-Rúa, 2013. "Sharing a polluted river through environmental taxes," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 4(2), pages 137-153, June.
  • Handle: RePEc:spr:series:v:4:y:2013:i:2:p:137-153
    DOI: 10.1007/s13209-011-0083-2
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    File URL: http://hdl.handle.net/10.1007/s13209-011-0083-2
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. 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.
    4. S. C. Littlechild & G. Owen, 1973. "A Simple Expression for the Shapley Value in a Special Case," Management Science, INFORMS, vol. 20(3), pages 370-372, November.
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    Citations

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    Cited by:

    1. Alcalde-Unzu, Jorge & Gómez-Rúa, María & Molis, Elena, 2015. "Sharing the costs of cleaning a river: the Upstream Responsibility rule," Games and Economic Behavior, Elsevier, vol. 90(C), pages 134-150.
    2. Abraham, Anand & Ramachandran, Parthasarathy, 2020. "A solution for the flood cost sharing problem," Economics Letters, Elsevier, vol. 189(C).

    More about this item

    Keywords

    Cost sharing; Pollutant-cleaning cost; Water taxes; C71; D61;

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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