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The distributional impact of common-pool resource regulations


  • Ambec, Stefan
  • Sebi, Carine


Purpose - Regulating common-pool resources is welfare enhancing for society but not necessarily for all users who may therefore oppose regulations. The purpose of this paper is to examine the short-term impact of common-pool resource regulations on welfare distribution. Design/methodology/approach - The authors model a game of common-pool resource extraction among heterogeneous users. Findings - It was found that market-based regulations such as fees and subsidies or tradable quotas achieve a higher reduction of extraction from free-access than individual quotas with the same proportion of better-off users. Also, they make more users better-off for the same resource preservation. Originality/value - The quota regulation has attractive fairness properties: it reduces inequality while still rewarding the more efficient users.
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Suggested Citation

  • Ambec, Stefan & Sebi, Carine, 2010. "The distributional impact of common-pool resource regulations," LERNA Working Papers 10.19.325, LERNA, University of Toulouse.
  • Handle: RePEc:ler:wpaper:10.19.325

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    References listed on IDEAS

    1. Clark, Colin W. & Munro, Gordon R. & Sumaila, Ussif Rashid, 2005. "Subsidies, buybacks, and sustainable fisheries," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 47-58, July.
    2. Burton, Peter S., 2003. "Community enforcement of fisheries effort restrictions," Journal of Environmental Economics and Management, Elsevier, vol. 45(2, Supple), pages 474-491, March.
    3. Fleurbaey, Marc, 2012. "Fairness, Responsibility, and Welfare," OUP Catalogue, Oxford University Press, number 9780199653591.
    4. Baland, Jean-Marie & Francois, Patrick, 2005. "Commons as insurance and the welfare impact of privatization," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 211-231, February.
    5. Jeff Dayton-Johnson & Pranab Bardhan, 2002. "Inequality And Conservation On The Local Commons: A Theoretical Exercise," Economic Journal, Royal Economic Society, vol. 112(481), pages 577-602, July.
    6. Baland, Jean-Marie & Platteau, Jean-Philippe, 2003. "Economics of common property management regimes," Handbook of Environmental Economics,in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 1, chapter 4, pages 127-190 Elsevier.
    7. Ambec, Stefan & Hotte, Louis, 2006. "On the redistributive impact of privatizing a resource under imperfect enforcement," Environment and Development Economics, Cambridge University Press, vol. 11(06), pages 677-696, December.
    8. Sethi, Rajiv & Somanathan, E, 1996. "The Evolution of Social Norms in Common Property Resource Use," American Economic Review, American Economic Association, vol. 86(4), pages 766-788, September.
    9. Weitzman, Martin L., 1974. "Free access vs private ownership as alternative systems for managing common property," Journal of Economic Theory, Elsevier, vol. 8(2), pages 225-234, June.
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    Cited by:

    1. Stefan Ambec & Alexis Garapin & Laurent Muller & Arnaud Reynaud & Carine Sebi, 2014. "Comparing Regulations to Protect the Commons: An Experimental Investigation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(2), pages 219-244, June.
    2. Adams, Samuel & Atsu, Francis, 2015. "Assessing the distributional effects of regulation in developing countries," Journal of Policy Modeling, Elsevier, vol. 37(5), pages 713-725.

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