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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
    as

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    File URL: https://papers.tinbergen.nl/22058.pdf
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    References listed on IDEAS

    as
    1. Avraham Ebenstein, 2012. "The Consequences of Industrialization: Evidence from Water Pollution and Digestive Cancers in China," The Review of Economics and Statistics, MIT Press, vol. 94(1), pages 186-201, February.
    2. René Brink & Arantza Estévez-Fernández & Gerard Laan & Nigel Moes, 2014. "Independence of downstream and upstream benefits in river water allocation problems," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 43(1), pages 173-194, June.
    3. van den Brink, René & van der Laan, Gerard & Moes, Nigel, 2012. "Fair agreements for sharing international rivers with multiple springs and externalities," Journal of Environmental Economics and Management, Elsevier, vol. 63(3), pages 388-403.
    4. Lopamudra Chakraborti, 2021. "Impact of upstream plant level pollution on downstream water quality: evidence from the clean water act," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 64(3), pages 517-535, February.
    5. Herrero, Carmen & Villar, Antonio, 2001. "The three musketeers: four classical solutions to bankruptcy problems," Mathematical Social Sciences, Elsevier, vol. 42(3), pages 307-328, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Claims Problem; River Pollution; Pollution Permits; Priority Rules;
    All these keywords.

    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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