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The Equity-Efficiency Trade-off in Environmental Policy: Evidence from Stated Preferences

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  • Simon Dietz
  • Giles Atkinson

Abstract

The design of environmental policy raises several equity issues, in particular the distribution of benefits and costs. At the same time, it has often been argued that there is a trade-off in environmental policy between equity and efficiency, which brings these issues firmly to the attention of environmental economics. In this paper we use a simple choice experiment to elicit individual preferences over equity-efficiency trade-offs in the context of two environmental problems, local air pollution and global climate change. We find that equity matters to people as much as efficiency does in the design and delivery of environmental policy.

Suggested Citation

  • Simon Dietz & Giles Atkinson, 2010. "The Equity-Efficiency Trade-off in Environmental Policy: Evidence from Stated Preferences," Land Economics, University of Wisconsin Press, vol. 86(3).
  • Handle: RePEc:uwp:landec:v:86:y:2010:iii:1:p423-443
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    References listed on IDEAS

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    Cited by:

    1. repec:taf:tcpoxx:v:17:y:2017:i:0:p:s111-s130 is not listed on IDEAS
    2. Anna Alberini & Milan Šcasný & Andrea Bigano, 2016. "Policy- v. Individual Heterogeneity in the Benefits of Climate Change Mitigation: Evidence from a Stated-Preference Survey," Working Papers 2016.80, Fondazione Eni Enrico Mattei.
    3. Milan Ščasný & Iva Zvěřinová & Mikolaj Czajkowski & Eva Kyselá & Katarzyna Zagórska, 2017. "Public acceptability of climate change mitigation policies: a discrete choice experiment," Climate Policy, Taylor & Francis Journals, vol. 17(0), pages 111-130, June.
    4. Andreas Ziegler, 2017. "Economic calculus or personal and social values? A micro-econometric analysis of the acceptance of climate and energy policy measures," MAGKS Papers on Economics 201716, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    5. Martin Stadelmann & Åsa Persson & Izabela Ratajczak-Juszko & Axel Michaelowa, 2014. "Equity and cost-effectiveness of multilateral adaptation finance: are they friends or foes?," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 14(2), pages 101-120, May.
    6. Elke D. Groh & Andreas Ziegler, 2017. "On self-interested preferences for burden sharing rules: An econometric analysis for the costs of energy policy measures," MAGKS Papers on Economics 201754, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    7. Pan, Xunzhang & Teng, Fei & Wang, Gehua, 2014. "A comparison of carbon allocation schemes: On the equity-efficiency tradeoff," Energy, Elsevier, vol. 74(C), pages 222-229.

    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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