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The river pollution claims problem

Author

Listed:
  • Yuzhi Yang

    (Vrije Universiteit Amsterdam)

  • Erik Ansink

    (Vrije Universiteit Amsterdam)

Abstract

We propose the river pollution claims problem to distribute a limited pollution budget among agents located along a river. A key distinction with the standard claims problem is that agents are ordered and they are given priority based on their location in this order instead of their identity. We propose two new axioms that are relevant in the context of river pollution and use these to characterize two priority rules. Our characterization results show that Consistency plays an important role since it makes sure that any asymmetric treatment will be transferred across problems.

Suggested Citation

  • Yuzhi Yang & Erik Ansink, 2022. "The river pollution claims problem," Tinbergen Institute Discussion Papers 22-058/VIII, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20220058
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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