Coasean Bargaining in the Presence of Pigouvian Taxation: Revisiting the Buchanan-Stubblebine-Turvey Theorem
Coasean arguments against the Pigouvian perspective are well established. A central tenet in this criticism argues that a Pigouvian tax may be a source of inefficiency: if parties were to bargain in the presence of a Pigouvian tax, (allocative) inefficiencies would occur-the so-called Buchanan-Stubblebine-Turvey Theorem. By analyzing a Coasean environment where the appropriation of property rights is costly, we show-in contrast to the Buchanan-Stubblebine-Turvey Theorem-that Coasean bargaining in the presence of a pre-existing (Pigouvian) tax is Pareto improving. This has implications for policy where dual regulatory environments exist, such as regulation at the state and federal level, as well as environmental liability and litigation.
|Date of creation:||01 May 2014|
|Contact details of provider:|| Postal: St. Lucia, Qld. 4072|
Phone: +61 7 3365 6570
Fax: +61 7 3365 7299
Web page: http://www.uq.edu.au/economics/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Aivazian, Varouj A & Callen, Jeffrey L, 1981. "The Coase Theorem and the Empty Core," Journal of Law and Economics, University of Chicago Press, vol. 24(1), pages 175-181, April.
- Stergios Skaperdas & Samarth Vaidya, 2008.
"Persuasion as a Contest,"
2008_07, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
- Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
- Baumol, William J, 1972. "On Taxation and the Control of Externalities," American Economic Review, American Economic Association, vol. 62(3), pages 307-322, June.
- Alex Robson, 2014.
"Transaction costs can encourage Coasean bargaining,"
Springer, vol. 160(3), pages 539-549, September.
- Robson, Alex, 2012. "Transaction Costs can Encourage Coasean Bargaining," MPRA Paper 40892, University Library of Munich, Germany.
- Alex Robson, 2012. "Transaction costs can encourage Coasean bargaining," Discussion Papers in Economics economics:201208, Griffith University, Department of Accounting, Finance and Economics.
- Frank A. Sloan & Justin G. Trogdon, 2004. "The impact of the master settlement agreement on cigarette consumption," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 23(4), pages 843-855.
- Glazer, A. & Konrad, K.A., 1997.
"Taxation of Rent-Seeking Activities,"
97-98-04, California Irvine - School of Social Sciences.
- Ian A. MacKenzie & Markus Ohndorf, 2012.
"Restricted Coasean Bargaining,"
CER-ETH Economics working paper series
12/156, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
- Alex Robson & Stergios Skaperdas, 2008.
"Costly enforcement of property rights and the Coase theorem,"
Springer;Society for the Advancement of Economic Theory (SAET), vol. 36(1), pages 109-128, July.
- Alexander R. W. Robson & Stergios Skaperdas, 2002. "Costly Enforcement of Property Rights and the Coase Theorem," CESifo Working Paper Series 762, CESifo Group Munich.
- Alex Robson & Stergios Skaperdas, 2005. "Costly Enforcement of Property Rights and the Coase Theorem," ANU Working Papers in Economics and Econometrics 2005-455, Australian National University, College of Business and Economics, School of Economics.
- Farmer, Amy & Pecorino, Paul, 1999. "Legal Expenditure as a Rent-Seeking Game," Public Choice, Springer, vol. 100(3-4), pages 271-288, September.
- Ian A. MacKenzie & Markus Ohndorf, 2013.
"Caps on Coasean Transfers,"
Discussion Papers Series
485, School of Economics, University of Queensland, Australia.
- Stephanie Rosenkranz & Patrick W. Schmitz, 2006.
"Can Coasean bargaining justify Pigouvian taxation?,"
Bonn Econ Discussion Papers
bgse7_2006, University of Bonn, Germany.
- Stephanie Rosenkranz & Patrick W. Schmitz, 2007. "Can Coasean Bargaining Justify Pigouvian Taxation?," Economica, London School of Economics and Political Science, vol. 74(296), pages 573-585, November.
- Rosenkranz, Stephanie & Schmitz, Patrick W, 2004. "Can Coasean Bargaining Justify Pigouvian Taxation?," CEPR Discussion Papers 4263, C.E.P.R. Discussion Papers.
- Arye L. Hillman & John G. Riley, 1989.
"Politically Contestable Rents And Transfers,"
Economics and Politics,
Wiley Blackwell, vol. 1(1), pages 17-39, 03.
- H. Spencer Banzhaf & Timothy Fitzgerald & Kurt Schnier, 2013. "Nonregulatory Approaches to the Environment: Coasean and Pigouvian Perspectives," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 7(2), pages 238-258, July.
- Baumol,William J. & Oates,Wallace E., 1988.
"The Theory of Environmental Policy,"
Cambridge University Press, number 9780521311120, December.
- Bernardo, Antonio E & Talley, Eric & Welch, Ivo, 2000.
"A Theory of Legal Presumptions,"
Journal of Law, Economics and Organization,
Oxford University Press, vol. 16(1), pages 1-49, April.
- Steven G. Medema, 2014. "The Curious Treatment of the Coase Theorem in the Environmental Economics Literature, 1960--1979," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 8(1), pages 39-57, January.
- Terry L. Anderson & Dominic P. Parker, 2013. "Transaction Costs and Environmental Markets: The Role of Entrepreneurs," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 7(2), pages 259-275, July.
- Parisi, Francesco, 2003. "Political Coase Theorem," Public Choice, Springer, vol. 115(1-2), pages 1-36, April.
- Cristina Ciocirlan & Bruce Yandle, 2003. "The Political Economy of Green Taxation in OECD Countries," European Journal of Law and Economics, Springer, vol. 15(3), pages 203-218, May.
When requesting a correction, please mention this item's handle: RePEc:qld:uq2004:515. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SOE IT)
If references are entirely missing, you can add them using this form.